[00:00:03]
GOOD AFTERNOON,[1.CALL TO ORDER/PLEDGE OF ALLEGIANCE/MOMENT OF SILENCE]
EVERYBODY.WELCOME TO THE CITY OF SEDONA COUNCIL MEETING.
I WOULD LIKE TO OFFICIALLY CALL THIS MEETING TO ORDER AT 4:31 PM TUESDAY, APRIL 14TH, 2026.
MADAM CLERK, PLEASE READ THE ROLE.
NOW PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG FOR THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
UH, I WOULD LIKE TO ASK, IS THERE ANYBODY HERE FROM MATT FORCE OR FROM FIRST THINGS FIRST.
UH, WE HAVE PROCLAMATIONS AND SO I WAS ASKING TO SEE IF THERE'S ANYBODY HERE TO PICK UP THE PROCLAMATIONS.
[3. CONSENT ITEMS - APPROVE]
GOING TO CONSENT ITEMS. I SEE THAT THERE'S A CARD FROM SOMEONE WHO WANTS TO PULL A CONSENT ITEM.IS ANYONE IN THE, ON THE COUNCIL OR STAFF WANTING TO PULL ANYTHING? OKAY.
TIM PERRY, WHAT ITEM WOULD YOU LIKE TO PULL? THREE E.
SO I TAKE A MOTION FOR ITEMS THREE, A TO D, AND, UH, AND I A THROUGH D AND F.
OH, MAY I MOVE TO APPROVE CONSENT ITEMS THREE A THROUGH D AND F SECOND.
AND WE'LL HEAR ITEM E LATER IN THE AGENDA, AND THEN WE'LL HAVE A MOMENT OF OURS.
GOOD AFTERNOON, MADAM MAYOR, VICE MAYOR AND COUNSELORS.
APRIL IS NATIONAL POETRY MONTH, AND IT'S REALLY HARD TO BELIEVE IT'S BEEN A YEAR SINCE WE LAUNCHED OUR POET LAUREATE PROGRAM IN COLLABORATION WITH COMMUNITY LIBRARY SEDONA LAST APRIL.
AND, UM, I WANTED TO THANK JUST JUDY POE, UM, AND MEMBERS OF THE COMMITTEE, COUNCILLOR KINSELLA, BARBARA WHITEHORN, WHOSE, WHOSE DAD IS A PUBLISHED POET, OF COURSE, REX AEROSMITH, WHO IS A PUBLISHED POET AND INITIATED THE PROGRAM AS WELL AS CHRISTOPHER FOX GRAHAM, WHO SEDONA A POETRY SLAM, CONTINUES TO BRING MANY PEOPLE TO, UH, TO OUR AREA TO PERFORM.
I ATTENDED HIS LAST ONE AS WELL AS THE OPEN MIC AT THE LIBRARY, AND IT WAS INCREDIBLE, THE NUMBER OF PEOPLE THAT TURNED OUT IT WAS REALLY WONDERFUL.
AND I ENCOURAGE THE PUBLIC THIS MONTH, THERE'S MANY EVENTS IN POETRY TO JOIN OUR LITERARY COMMUNITY, UM, AND PARTICIPATE OR JUST GO LISTEN.
SO TODAY I AM PLEASED TO PRESENT FOUR POETS TO CELEBRATE THIS OCCASION FOR THE POET.
POETRY IS A POWERFUL AND THERAPEUTIC MEDIUM OF SELF-EXPRESSION FOR THE LISTENER.
IT ALLOWS US TO EXPLORE A RANGE OF EMOTIONS WHICH CAN BE INCREDIBLY RELATABLE.
I'VE INTENTIONALLY CHOSEN FOUR POETS WHO WILL COVER A RANGE OF EMOTIONS FOR THIS MOMENT.
SO FIRST UP, WE HAVE ROGER BLAKE ASTON, NOT BLACKTON, BLAKE ASTON.
AND ROGER IS A PROFESSIONAL MAGICIAN AND POET.
HE TRAINED FOR THE STAGE ATTENDING DRAMA SCHOOL IN LONDON.
HE IS THE AUTHOR OF FIVE POETRY BOOKS ALL AVAILABLE ON AMAZON.
MOST OF HIS POEMS ARE WRITTEN IN A TRADITIONAL RHYMING FORMAT.
AND I'M LIKE, THAT IS THE OPENING POEM FOR THE MOMENT OF ART.
SO PLEASE WELCOME ROGER WITH HIS POEM, POETS REVOLUTION.
LET ALL THE POETS COME OUT FROM THEIR HIDING AND SHOUT FROM THE ROOFTOPS, THEIR VERSE, AND THEIR RHYME.
WE CAN TAKE OVER THIS WORLD OF CONFUSION, RELEASING OLD CONCEPTS.
WE COULD RULE COUNTRIES WITH OUR WORDS OF WISDOM, INSPIRING, TRANSFORMING.
[00:05:01]
CAN SHINE LIGHT IN THE POCKETS OF DARKNESS BY CHANGING THE COURSE OF BOTH WOMEN AND MEN.WE TALK OF STARS AND OF FAR AWAY GALAXIES.
CONNECT TO THE FAIRIES, THE GOBLINS AND SPRITE.
WE CREATE STORIES OF MAGIC AND MYSTERY WHILE TAKING GREAT PRIDE IN THE POEMS WE WRITE, WE BRING AWARENESS TO WONDERS OF NATURE AND SPEAK OF THE GIFTS THAT COME FROM THE DIVINE.
WE ARE TRUE WARRIORS WITHOUT ANY WEAPONS.
IT'S DEEP IN OUR HEARTS AND OUR SOULS THAT WE SHINE.
SO RISE UPY, POETS OF LOVE WHO HAVE VISION REPLACING DICTATORS AND DESPOTS AND KINGS.
FLY LIKE THE EAGLE AND DANCE WITH THE ANGELS.
BELIEVE IN THE MAGIC WHILST SPREADING YOUR WINGS.
SHE IS SERVING HER TWO YEAR TERM AS OUR INAUGURAL YOUTH POET LAUREATE.
SHE IS A JUNIOR AT VERDE VALLEY HIGH SCHOOL AND HOPES TO ENCOURAGE MORE YOUNG PEOPLE TO EXPRESS THEMSELVES THROUGH POETRY.
SHE WILL READ A BLACKOUT POEM, WHICH IS A CREATIVE FORM WHERE SHE ERASED CERTAIN WORDS FROM THE POEM AND INSERTED HER OWN WORDS.
SHE'S CHOSEN TO READ FROM SEARCY, A MYTHIC FANTASY NOVEL BY MADELINE MILLER.
THE THEME EXPLORES THE LIFE OF THE WITCH CCY DURING THE GREEK HEROIC AGE.
WHEN I WAS BORN, THEY CALLED ME NYMPH.
MY MOTHER WAS GUARDIAN OF WONDER, FLOWERS AND CHILDREN IN NYMPHS AND RIVER.
GODS LAUGHING, BRIGHT GOLDEN GAMES OF LOVE.
HER HAIR, WARM BROWN SEEMED LIT FROM WITHIN HOT AS A BONFIRE.
MY MOTHER SAW LOVE THE ENVY OF THE ODDS.
I WAS YOUNG HAIR STREAKED, LICK ALYX SHARPNESS LESS THAN PLEASING.
I SIT ALL DAY, DARK AND SILENT, BURIED AND POLISHED, OBSIDIAN BLOOD.
MY FATHER, DARK FLAMES FOLLOW ME.
MY WORLD WAS MADE OF GOLD, YELLOW SKIN, AMANT EYES, BRONZE HAIR GLOWING, SHINING MY OWN SKIN.
MY SISTER WAS BORN THE FUTURE GLOWED.
AS A SUMMER'S MORNING, MY MOTHER WAS PLEASED.
I LEFT TO THE RICH GREEN FOREST MOUNTAINS, BLUE OF THE OCEAN, THE MOST BEAUTIFUL LIKE SUN ON THE WATER.
DANCERS IN THE SUNSET, LIGHT GLEAMED, GLOSSY SOFT STAR, BRIGHT AND FLASHING.
SILVER TIP, SISTERS KISSING KISSES SWINGING THROUGH THE SKY CONSTELLATIONS ON EARTH.
THE WALLOW SHOWED THE MOON'S HALF FACE.
MY MAGIC FLOWERS SQUEEZE DROPS OF MOON.
THE LAST FLOWER PLANTED WHERE THE SUN FELL, GLEAMING LIKE WATER.
SHE WEAVES AND CAST SPELLS, NEVER SEEMS TO TIRE THE DAUGHTER.
WHISPERS ABOUT GOLDEN EMBRACE.
ONE DAY I WILL ENJOY LIFE'S PRECARIOUSNESS.
THIS IS WHAT IT MEANS TO BE ALIVE.
MY DIVINITIES SHINES IN THE SUN.
NEXT UP WE HAVE OUR POET LAUREATE, GARY EVRY.
HE IS SERVING A TWO YEAR TERM.
HIS WORK SPANS FROM POETRY TO FICTION AS WELL AS SCIENCE FICTION.
HIS POETRY OFTEN DRAWS FROM THE NATURAL BEAUTY AND CULTURAL RICHEST OF THE VERDE VALLEY.
HE'S BEEN RECOGNIZED WITH MULTIPLE AWARDS AND LEADS, POETRY EVENTS, UH, AND VERSES AT THE VILLAGE AT TAK AND OPEN MIC NIGHT AT THE LIBRARY'S FIRE PIT, GARY WILL PERFORM ECHOES.
IS IS THIS THING ON? CAN ANYBODY HEAR ME? YES.
IS IS THIS THING ON IT? CAN, IS ANYBODY LISTENING? WELCOME TO THE WORLD OF POETRY WHERE WE POUR OUR HEART INTO OUR CRAFT, WHERE WE POUR OUR SOUL ONTO THE PAGE UNTIL EVERY WORD GLOWS, LIKE BURNING COALS.
AND THEN WONDER IS ANYBODY LISTENING? ANYBODY AT ALL MORE EMERGING WRITERS ARE MURDERED BY
[00:10:01]
THE VAST INDIFFERENCE OF AN ENDLESS UNIVERSE THAN ANY OTHER CAUSE.IN THE LATE 1950S, THE BEATNIK POET GARY SNYDER, HOSTED AN OPEN MIC POETRY EVENT AT LAWRENCE FERNAND, GETTY'S CITY LIGHTS BOOKSTORE.
THEY HOSTED POETRY, OPEN MICS EVERY SINGLE NIGHT FOR TWO WEEKS.
AND SNYDER CLAIMS THERE HAS BEEN A POETRY READING SOMEWHERE IN SAN FRANCISCO EVERY SINGLE NIGHT FOR THE 70 YEARS SINCE.
CERTAINLY VERDE VALLEY POETRY IS UNDERGOING A RENAISSANCE.
NOW WE'VE GOT MORE EVENTS AND MORE PEOPLE ALL THE TIME.
MAYBE A SIMILAR THING IS HAPPENING HERE.
OF COURSE, IT WAS ALSO LAWRENCE FURLAND GETTY WHO SAID, THE PROBLEM WITH POETRY IS ALL IT DOES IS CREATE MORE POETS.
AND I CAN GIVE YOU AN EXAMPLE FROM RIGHT HERE AT HOME.
ANYA AND I CO-HOSTED THIS WONDERFUL FIRE PIT, OPEN MIC AT THE LIBRARY LAST MONTH.
AND NOW INSTEAD OF TWO POETS READING FOR YOU AT THE MOMENT OF ART, YOU GOT FOUR
A PROBLEM WITH POETRY IS ALL IT DOES IS CREATE MORE POETS.
YOU KNOW, I REMEMBER LONG AGO WHEN I REGISTERED TO VOTE FOR THE VERY FIRST TIME I WAS 18 YEARS OLD, I WAS STRUTTING UP TO THE REGISTER, READY TO DO MY CIVIC DUTY, AND THE REGISTER ASKED MY PARTY PREFERENCE.
AND WHILE I WAS 18 YEARS OLD, I ANSWERED THE WAY THAT MOST YOUNG MALES WOULD ANSWER.
I LIKE LOUD PARTIES,
I DEFINITELY LIKE LOUD PARTIES.
AND THE REGISTRAR JUST KIND OF FROWNED AT ME AND SAID, THERE, THERE'S NO SUCH THING.
THAT MEANS I'M THE LOUD PARTY FOUNDER.
THAT'S AWESOME BECAUSE NOW I'M HERE AS THE REPRESENTATIVE OF THE LOUD PARTY IN INVITING ALL OF YOU TO JOIN TOO, BECAUSE DON'T YOU KNOW, UH, MORE MEMBERS MEANS A LOUDER PARTY.
INVITE YOUR FRIENDS, INVITE YOUR FAMILY.
LET'S GET AS LOUD AS POSSIBLE BECAUSE THAT'S HOW DEMOCRACY WORKS.
AND WHEN WE WRITE OUR LOUD PARTY POETRY, LET'S MAKE SURE WE INSPIRE OTHER PEOPLE TO BECOME POETS TOO, BECAUSE IT'S THAT FIRE PIT.
LAST MONTH WE HAD THE ECHOES OF VERSE AND SONG AND LAUGHTER ECHOING OFF THE RED ROCKS UNDERNEATH THAT FULL MOON AND SPLATTERING IT WITH SUNSHINE AND SMILES.
SO IF WE CAN INSPIRE ENOUGH POETS AND CREATE A POOL OF POETRY DEEP ENOUGH TO MAKE A CONGREGATION OF LITERATURE, I BELIEVE THAT WE CAN MAKE A FUTURE SEDONA, A BETTER SEDONA.
AND THEN IF WE CHOOSE A WORDS WISELY, YOU KNOW, IF WE CHOOSE OUR WORDS WISELY, WE MIGHT CREATE ECHOES WHICH WILL LAUGH ACROSS THIS VALLEY FOR GENERATIONS.
AND LAST UP WE HAVE PAUL JONES.
PAUL IS A NATIVE NEW YORKER WHO HAS LIVED IN ARIZONA FOR 19 YEARS.
HE WAS A MENTOR WORKING IN THE VOC FOR A YOUNG ADULT RECOVERY PROGRAM.
HE LEADS WEEKLY HIKES FOR THE PAST EIGHT YEARS, HE'S BEEN PERFORMING POETRY OVER 20 YEARS.
AND LAST YEAR HE WAS A SEVEN TIME POETRY SLAM WINNER IN ARIZONA.
HE'S AN AVID EXPLORER, NATIONALIST, AND ARTIST WHO LIVES IN RIM ROCK WITH HIS DOG.
YO-YO PAUL IS ENDING THIS WITH SOME LEVITY PERFORMING HIS SATIRE.
HOW YOU GONNA GIVE ME A RIDE?
TODAY I FINALLY MADE THE PILGRIMAGE TO THE SACRED RED ROCKS, AND I SAT IN THE PLACE WHERE THE PSYCHIC LADY WHO INVENTED VORTEX TOURISM AT THE HARMONIC CONVERGENCE TOLD ME TO GO.
I REALLY MUST BE A MESS ABOUT MY CULTURALLY APPROPRIATED SAGE AT WHOLE FOODS.
BUT THE UFO TOUR GUY TOLD ME THAT THE STAR PEOPLE VISIT THE MOST FREQUENTLY.
AND I PRAYED TO THE STAR LAKE SATELLITE LAUNCH, BUT I STILL DID FEEL HEARD.
AND THEN I HAD AN AURA EMERGENCY AND I FELT LIKE A HUMAN MOOD RING.
AND I WAS SO EMBARRASSED I DON'T ALREADY SEEMED LIKE THIS SO PURPLE.
SO I I WENT TO GET MY ORAL PHOTO TAKEN TO CONFIRM THAT YEP, MY WORST FEAR HAD COME TRUE.
BUT HE GOT DESCRIBED A CRYSTAL MIND BY THE DEPRESSED CHILD TO POINT ME ON THE RIGHT PATH.
[00:15:01]
IT WAS JUST MY LUCK.MERCURY WAS IN THE RETROGRADE AND I CAN'T EVEN POINT MERCURY OUT OF THE SKY.
AND I WAS FEELING SO OVERWHELMED AT MY ACTIVATED CACAO AND CRANHAM SMOOTHIE HAD NO EFFECT.
MY SPIRIT BEING SO INDECISIVE.
I WENT AROUND THE UPTOWN ROUNDABOUT THREE WHOLE TIMES, AND MY EMPATHIC POWERS WERE SO DIMMED BY THE CRISSCROSSING CHEM TRAILS THAT I MISSED MY PINK TOUR TO THE PLACE EVERYONE GOES TO FEEL THE ENERGY THE LEAST.
I GOT A FREE HEART SHAPED ROCK WITH SOME RETIRED GUY CARVED IN HIS GARAGE.
AND I WENT TO DEVIL'S BRIDGE IN THE BIRTHING CAVE.
AND I STOOD IN THE SACRED SPOT THAT THE INFLUENCERS ALL TOLD ME TO GO FROM MY RITE OF PASSAGE THAT MY TOURIST TO ANCESTORS HAVE ALL GONE TO.
AND I HELD MY GLOWING SCREEN UP TO THE HEAVENS TO SEE MY TRUE SELF REFLECTED BACK TO ME.
I COULDN'T GET A SIGNAL
I LEFT AN OFFERING AT THE TURQUOISE ARCHES.
I SAT AND MINDFULLY GOOGLED WHAT'S A STUPID IT, A STUPID FOR HIKING THE WEST FORK.
BUT I ALMOST GOT LOST WHEN I COULDN'T FIND THE EAST FORK BACK OUT.
ACTUALLY, I WAS JUST IN TIME FOR A BLUETOOTH CEREMONY PLAYING IN THE CANYON TO RELINE MY SHOCK.
ROSEN, HELP ME FIND MY WAY TO THE PROMISED LAND OF MEANINGLESS CAIRNS, WHERE I SCRATCHED THE NAMES OF ALL MY FUTURE EX-GIRLFRIENDS INTO THE RED ROCKS BEFORE I COLLAPSED TO HEAT EXHAUSTION, WHICH FINALLY GAVE ME A VISION OF THE ALL KNOWING DEITY OF DEHYDRATION BEFORE BEING REBORN IN A SEARCH AND RESCUE HELICOPTER.
I NOW KNOW THE MEANING OF LIFE, BUT I WAS ALWAYS MISSING BACK HOME IN THE SOURCE OF ALL MY PAIN.
YOU DON'T HAVE TO PAY THOUSANDS OF DOLLARS TO OTHER PEOPLE TO FEEL BETTER.
SOMETIMES YOU JUST HAVE TO DRINK MORE WATER.
IF YOU REALLY WANT TO KNOW WHERE THE VORTEX IS, THE VORTEX IS WITHIN YOU.
YOU HAVE ALL THE ANSWERS THAT YOU DESIRE THE WHOLE TIME.
THERE WERE WONDERFUL POEMS. YAY,
[5. SUMMARY OF CURRENT EVENTS BY MAYOR/COUNCILORS/CITY MANAGER & COUNCIL ASSIGNMENTS]
OF CURRENT EVENTS BY MAYOR, COUNCIL, CITY MANAGER, AND COUNCIL ASSIGNMENTS.ANNETTE, I KNOW YOU HAVE SOMETHING.
UM, SO GOVERNOR KATIE HOBBS HAS DECLARED THIS WEEK ARIZONA PUBLIC SAFETY TELECOMMUNICATORS WEEK.
SO BASICALLY RECOGNIZING OUR 9 1 1 DISPATCH PROFESSIONALS.
UM, IT'S OBSERVED APRIL 12TH THROUGH 18TH TO RECOGNIZE THESE DEDICATED HEADSET HEROES, UM, WHO PERFORM CRITICAL WORK FOR OUR COMMUNITY EVERY DAY.
AND I WANTED TO MAKE SURE THAT OUR 9 1 1 DISPATCHERS HERE IN SEDONA KNOW HOW MUCH WE APPRECIATE THEM AND EVERYTHING THAT THEY HAVE TO HANDLE WITH PEOPLE HAVING THEIR WORST MOMENTS.
UM, THEY'RE OFTEN THE FIRST POINT OF CONTACT AND EMERGENCIES.
THEY PROVIDE THE CALM, STEADY GUIDANCE AND MOMENTS OF UNCERTAINTY AND CRISIS.
AND THOUGH THEY'RE RARELY SEEN AND OFTEN ONLY HEARD, THEY PLAY A VITAL ROLE IN OUR PROTECTION OF LIFE.
AND THIS YEAR, UM, WE'RE REALLY PLEASED THAT GOVERNOR HOBBS HAS ISSUED AN OFFICIAL PROCLAMATION IN RECOGNIZING OUR 9 1 1 PROFESSIONALS FOR THIS WEEK.
SO THANK YOU TO OUR TEAM OVER AT SEDONA POLICE DEPARTMENT.
UH, TWO WEEKS AGO I ATTENDED THE NACOG ECONOMIC DEVELOPMENT, UH, COMMITTEE MEETING UP IN FLAGSTAFF, A OT.
THE, UH, ARIZONA OFFICE OF TOURISM WAS PRESENT AS ONE OF THE SPEAKERS AT THAT MEETING.
AND, UH, ONE OF THOSE FOLKS, UH, DESCRIBED THE DROP IN INTERNATIONAL TRAVEL TO THE STATE OF ARIZONA AS A FIVE ALARM FIRE.
UM, I REALLY GOT THE IMPRESSION THAT THIS PERSON DOES NOT GET OUT OF THE OFFICE OFTEN, UH, WITH THAT PARTICULAR CHOICE OF, UH, DESCRIPTION ON, UH, THE CONDITIONS WITH INTERNATIONAL TRAVEL IN ARIZONA, BUT IT IS A, A CAUSE FOR CONCERN THAT WAS EXPRESSED.
THEY ALSO TALKED ABOUT THAT THEIR DATA IS WAY BEHIND AND THEY'RE VERY FRUSTRATED ABOUT THAT AND THEY'RE BEGGING FOR CITIES TO SHARE THEIR FORECAST.
AND I SAID, YOU NEED TO MEET ANDREW.
AND THEY SAID, WE KNOW ANDREW, WE LOVE HIM.
SO, UH, ANDREW, YOU ARRIVED AT JUST THE RIGHT TIME TO, TO CATCH THAT, UH, GOOD VIBE.
[00:20:01]
UM, AND THEY'RE WORKING TO RAISE THE CO-OP MATCH ON ADVERTISING FROM 10 TO 15%.SO THAT WAS, UH, SOME RELEVANT UPDATES TO SHARE.
ANYONE ELSE? PETE? THANK YOU, MAYOR.
I JUST WANTED TO QUICKLY REPORT ON TWO, UH, ITEMS. ONE, UH, OUR PLATEAU WATERSHED PARTNERSHIP.
WE HAD THE SECOND NOW OF OUR GROUNDWATER RESILIENCE CONFERENCES, WHICH IS SPONSORED BY A THREE OF THE STATE UNIVERSITIES.
UM, AND IT'S REALLY INTERESTING.
THE ENGAGEMENT WE'RE GETTING IS GREAT.
WE'RE REALLY WORKING TOWARDS DEVELOPING A, A WEBSITE WHERE OUR, OUR PEOPLE CAN REALLY GET A PICTURE OF OUR AQUIFERS HERE IN THE COCONINO PLATEAU AND, AND, AND DOWN TO THE SEDONA AREA.
SO REALLY ENCOURAGED THAT WE MIGHT ACTUALLY BE MAKING SOME PROGRESS HERE.
AND THEN SECOND, THE NEW, UH, YAVAPAI COUNTY, UH, WATER GROUP AND OPEN SPACE GROUP.
UM, ROXANNE HOLLAND DID START TO ATTEND WITH ME, WHICH WAS REALLY BEAUTIFUL TO HAVE, UM, A VERY KNOWLEDGEABLE STAFF HELPING.
WE TALKED ABOUT, UM, STORMWATER RETENTION AND INFILTRATION AND RECHARGE, WHICH WE DON'T DO.
WE DO POST-TREATMENT OF OUR, UM, OUR, OUR, UM, WATER TREATMENT PLANT, BUT WE DON'T REALLY TAKE ON STORMWATER IN RETENTION AND INFILTRATION.
THE NEXT MEETING, JUNE IS I THINK THE GROUP IS REALLY GETTING ITS FEET UNDER IT.
AND THE NEXT MEETING IN JUNE WILL REALLY START FOCUSING ON SOME POLICY AREAS THAT WE MIGHT WANT TO THINK ABOUT MOVING FORWARD.
UM, I HAVE A COUPLE OF ANNOUNCEMENTS.
ANYBODY ELSE BEFORE I START? OKAY.
UH, THIS MORNING ANNETTE AND I MET WITH REPRESENTATIVES FROM THE GOVERNOR'S OFFICE WHO ARE, UH, CONSTITUENT ENGAGEMENT FROM THE OFFICE OF A CONSTITUENT ENGAGEMENT.
AND THEY'RE MEETING WITH, EXCUSE ME, THE TWO PEOPLE.
ONE WAS VIRTUAL AND ONE WAS HERE IN PERSON ARE, UH, RESPONSIBLE FOR THE NORTHERN RURAL COUNTIES AND CITIES.
SO I THINK IT WAS FIVE COUNTIES AND 22 CITIES.
AND, UH, WE MET WITH THEM ABOUT A YEAR AGO, TALK ABOUT WHAT THE OFFICE PROVIDES AND ABOUT THE ISSUES WE WOULD LIKE TO BRING TO THE GOVERNOR'S ATTENTION.
AND WE SPOKE ABOUT, THEY HAD A LIST FROM LAST YEAR.
STRANGELY ENOUGH, EVERY SINGLE ITEM ON THAT LIST WAS RELEVANT THIS YEAR.
UH, AND THEN, UH, WE REEMPHASIZED SHORT TERM RENTALS.
THE FACT THAT RURAL ARIZONA GETS THE SHORT END OF THE STICK WHEN IT COMES TO GRANTS AND LOANS FROM VARIOUS CITY, UH, STATE AGENCIES.
AND WE FEEL WE HAVE THE MASS, WE DON'T HAVE THE POPULATION, SO WE ARE IGNORED.
AND YESTERDAY I JOINED THE MAYORS FROM THE VERDE VALLEY, THE OTHERS CITIES AND TOWNS IN THE VERDE VALLEY.
WE HAD A MEETING WITH REPRESENTATIVE OR CONGRESSIONAL REPRESENTATIVE DAVID SCHWEIKERT, WHO'S RUNNING FOR GOVERNOR.
AND, UH, WE AGAIN TALKED ABOUT THE SAME TYPE OF ISSUES THAT WE ARE FACING, PARTICULARLY WITH THE LEGISLATURE, TRYING TO ELIMINATE LOCAL CONTROL IN OUR ABILITY TO, UH, TAKING AWAY SOME OF THE WEAPONS THAT WE HAVE.
THE VERY FEW THAT WE HAVE WITH REGARDS TO OUR ABILITY TO GET MONEY TO RECEIVE MONEY, PARTICULARLY THE OTHER COMMUNITIES IN THE VERDE VALLEY WHERE THEY CHARGE, THEY TAXED RENT, THEY CAN'T ANYMORE FOOD, THEY CAN'T ANYMORE, AND VARIOUS SUNDRY THINGS.
WE ALSO BROUGHT UP THE CURRENT PIECE OF LEGISLATION THAT NOW IS A REFERRAL.
I GUESS WE'LL TALK ABOUT THIS LATER.
HCR 2016, WHICH HAS THE MORATORIUM ON UTILITY BILLS, HAS, COULD NOT GET ENOUGH, UH, VOTES IN THE LEGISLATURE.
SO NOW THEY HAVE A REFERRAL TO THE BALLOT, WHICH WE PUT A MORATORIUM ON BEING ABLE TO RAISE ANY UTILITY BILLS DESPITE THE NEED AND DESPITE THE FACT THAT WE'RE SUPPOSED TO NOT GIVE GENERAL FUND MONEY TO MAKE UP THE DIFFERENCE BETWEEN THE REVENUE THAT WE RECEIVE FROM, FROM THE UTILITY TAX OR UTILITY COSTS, VERSUS THE AMOUNT OF MONEY IT TAKES US TO RUN THE UTILITIES.
UH, I ALSO HAVE ANO A COUPLE OF
[00:25:01]
ANNOUNCEMENTS THAT NANCY ASKED ME TO READ ABOUT POETRY.AND OUR POET LAUREATE, GARY EERY, WILL BE LEADING THE FOLLOWING POETRY EVENTS VERSUS IN THE VILLAGE TOMORROW FROM FIVE TO SIX 30 AND WEDNESDAY, MAY 20TH FROM FIVE TO SIX 30 AT THE TILAK PATIO.
LAS CAMPANIA, THE FIRST FEATURES REX AEROSMITH, CLINT FRACK AND CHRIS PELINI.
AND THE SECOND FEATURES MARTHA ENTIN AND RACHEL POLAND.
AND THEN AS THEY MENTIONED ABOUT THE LIBRARY FIRE PIT OPEN MIC, THERE'LL BE ANOTHER ONE ON WEDNESDAY, MAY 27TH FROM SIX TO 7:30 PM FEATURING POETRY LOVERS FROM ACROSS THE VERDE VALLEY.
THE LAST FIRE PIT, OPEN MIC WAS A HUGE SUCCESS AND IT WILL BE A FUN NIGHT FOR ALL TO CELEBRATE THE LITERARY ARTS.
SO HOPE YOU CAN JOIN THEM THERE.
ANYBODY ELSE? OKAY, ONE MORE TIME.
[7. PUBLIC FORUM]
PUBLIC FORUM.I DON'T HAVE ANY CARDS, BUT I KNOW THERE ARE SOME.
COUNSELORS, MY NAME IS JOHN MARTINEZ AND I LIVE HERE IN SEDONA.
REASON I'M HERE IS THAT I'M INVITING ALL OF YOU, EVERYONE IN THE AUDIENCE AND THOSE THAT ARE WATCHING ON TV LAND WITH REGARDS TO THE LAST PERFORMANCE FOR THE SEDONA SYMPHONY.
I KNOW SEVERAL OF YOU HAVE ATTENDED IT, AND I'M PRETTY SURE YOU WALKED AWAY AMAZED AT HOW GOOD OUR ORCHESTRA IS.
THE FINAL PRESENTATION FOR THE CONCERT WILL BE TO CELEBRATE THE 250TH BIRTHDAY OF THE UNITED STATES OF AMERICA.
NOW, ALL PIECES ARE FROM COMPOSERS THAT ARE AMERICANS, SUCH AS LEONARD BERNSTEIN, AND THOSE ARE FROM NEW YORK.
I REMEMBER THEY SAID THEY CALLED THEM LENNY
THOSE GUYS ARE FANTASTIC COMPOSERS I THINK YOU REALLY ENJOY.
BUT THE REALLY UNIQUE THING, THOSE THAT I BELIEVE SOME OF YOU HAVE HEARD HER, IS ABIGAIL FISHER.
SHE IS A RENOWNED ORCHESTRA, UH, OPERA SINGER, AND SHE WILL BE PERFORMING HERE.
ABIGAIL IS A SEDONA RESIDENCE.
SO PLEASE TRY AND PLAN TO ATTEND SATURDAY THIS COMING SATURDAY, SEVEN O'CLOCK AT SPAC SEDONA PERFORMING ARTS CENTER.
IF YOU HAVE NOTHING ELSE TO DO ON MAY THE FIFTH, CINCO DE MAYO SAFECO IS HAVING THEIR SECOND ANNUAL, UH, CHILI COOKOFF.
YOU'LL BE, YOU'LL MEET ALL OF US THAT BELONG TO SAFECO, WHICH IS SEDONA AREA VETERANS COMMUNITY OUTREACH, AND LISTEN TO WHAT WE'VE GOT, WHAT WE TRY TO DO.
FOR THOSE OF YOU THAT ARE STILL SAYING WHAT IS SAFECO, I'M SURE ALL OF YOU, IF NOT MOST OF YOU ARE AWARE OF THE FLAGS ON 89 A.
THAT'S US HIGH SCHOOL SCHOLARSHIPS.
SO PLEASE TRY TO ATTEND THE CHILI COOKOFF MAY 5TH AT, UH, CIN CINCO DE MAYO AT THE ELKS LODGE.
OKAY, WE'VE GOT GARY, GARY W. JONES.
UH, RACHEL COLLINS, FOLLOWED BY SCOTT SER.
WE'RE HERE TO SPEAK AGAIN BECAUSE THE COUNCIL AND PUBLIC OFFICIALS REFUSE TO DO ANYTHING ABOUT THE CORRUPTION OF OUR POLICE DEPARTMENT THAT WE'VE BEEN REPORTING AND FILING LAWSUITS ABOUT FOR YEARS.
WE'VE BEEN TORTURED, TRAUMATIZED
[00:30:01]
AND SUFFERING OUR LIVES DESTROYED BY OUR OWN MALFEASANCE.SEDONA POLICE OFFICERS CRIMINALIZING INNOCENT RESIDENTS THROUGH THEIR SCHEME OF TRAFFIC STOPS THAT ESCALATE INTO FALSE AND FELONY CHARGES AND INCARCERATION.
WE'RE AFRAID TO DRIVE IN OUR OWN TOWN, GOING 35 IN A 35 WITH ALL OF OUR LIGHTS AND WORKING ORDER BECAUSE THERE'S A 50 50 CHANCE THAT TODAY WILL BE THE DAY YOU GET PICKED OFF.
BEING ASSAULTED BY POLICE IS A ROUTINE REALITY OF LIVING HERE AND SO PREVALENT THAT WHEN I RECENTLY MADE A RECORDS REQUEST FOR ALL ASSAULTS THAT SEDONA OFFICERS CLAIM TO HAVE BEEN PERPETRATED ON THEM BY CITIZENS OVER THE LAST 10 YEARS, AS WELL AS THE NUMBER OF TIMES THEY FELT THE NEED TO ARREST CITIZENS FOR RESISTING ARREST.
THERE WERE OVER 149 SUPPOSED ASSAULTS COMMITTED BY CITIZENS ON OUR POLICE OFFICERS, WHICH ANYONE WILL TELL YOU IS BEYOND EXTRAORDINARY.
AND THE THIRD PART OF THE REQUEST THAT I ASKED FOR, WHICH WAS THE NUMBER OF CITIZENS WHO CLAIMED THEY HAD BEEN ASSAULTED BY OFFICERS, WAS NOT RESPONDED TO AT ALL BY THE CITY.
I WAS TOLD I WOULD HAVE TO PAY $2,000 FOR THOSE RECORDS, WHICH I BELIEVE IS A WAY OF TRYING TO WITHHOLD EVIDENCE FROM THE PUBLIC.
AND I THINK AS A VIOLATION OF FOIA, WE'RE CHECK, WE'RE CHECKING THAT OUT LEGALLY RIGHT NOW.
TODAY, WE'RE HOLDING YOU ACCOUNTABLE FOR AND EXPOSING THE ACTUAL CASE OF ONE OF OUR OWN RESIDENTS NAMED ERICA MONTGOMERY.
CURRENTLY 49 YEARS OLD, SERVING A 10.50 CENT YEAR SENTENCE IN PERRYVILLE PRISON BASED ON A 10:00 PM TRAFFIC STOP.
AND THE FALSE ALLEGATIONS AND CHARGES MADE BY TWO SEDONA POLICE OFFICERS THAT SHE ASSAULTED THEM WITH THE INTENT TO SEVERELY INJURE OR KILL THEM.
WE CITIZEN INVESTIGATORS, HAVE BEEN PUTTING TOGETHER THIS PUZZLE FOR MONTHS.
AND NOW WE NEED JUST A FEW PIECES, INCLUDING THE VIDEO OF THE ASSAULT ON THE OFFICERS BY ERICA IN THEIR ROUTINE ATTEMPT TO WITHHOLD EVIDENCE FROM WE, THE PEOPLE I RECEIVED FROM THE CITY, MORE THAN THREE HOURS OF REDACTED VIDEO WITH THE FIRST 22 MINUTES OF THE VIDEO MISSING.
THAT WOULD BE THE PART OF THE ENTIRE INCIDENT.
UH, THAT'S CALLED TAMPERING WITH EVIDENCE AND IT'S A FELONY CRIME.
THOSE 22 MINUTES WERE THE MISSING PIECES OF EVIDENCE.
WE NEED TO PROVE THE CRIMINALITY OF THE CHARGES THAT WERE FALSELY PROMOTED ON ERICA IN ORDER TO EXONERATE HER CITY MANAGER.
PICARD HAS TOLD A RESIDENT WHO'S HERE TODAY THAT SHE HAS SEEN THE ATTACK THAT ERICA COMMITTED ON, UH, AN OFFICER.
HOWEVER, NO ONE CAN PROVIDE THAT EVIDENCE TO US.
BUT LAST WEEK I GOT A GIFT AND IT WAS THE MISSING 22 MINUTES OF THE VIDEO SHOWING THE, THAT AFTER SIX PEACEFUL MINUTES, HAVING CONVERSATION WITH ERICA OUTSIDE HER CAR, THROUGH THE CAR WINDOW, OFFICER RIPPED OPEN HER CAR DOOR, PULLED HER OUT IN THREE SECONDS AND ASSAULTED HER ON THE GROUND.
SCOTT SOLER, RESIDENT OF SEDONA SINCE 1989.
UH, THIS IS THE, UH, OFFICIAL REPORT OF OFFICER JESSE SANTOS SUBMITTED ON NOVEMBER FIVE, TWO DAYS AFTER THE INCIDENT ON NOVEMBER 3RD, 2023.
AT APPROXIMATELY 10:10 PM ERICA ANNE MONTGOMERY WAS PLACED UNDER ARREST FOR AGGRAVATED ASSAULT ON AN OFFICER AND RESISTING ARREST.
AFTER SHE STRUCK AN OFFICER IN THE HEAD WITH A METAL CROWBAR.
UH, I IMMEDIATELY ILLUMINATED MY OVERHEAD EMERGENCY LIGHTS TO PROCEED THROUGH THE INTERSECTION SAFELY AS WELL AND AFFECTED A TRAFFIC STOP.
THE VEHICLE CAME TO, YOU KNOW, ON A PRIVATE PROPERTY, IT SHOULD, UH, BE NOTED THAT WHILE MY VEHICLES FRONT FACING CAMERA INITIATED UPON THE ACTIVATION OF MY OVERHEAD LIGHTS, MY NEWLY ISSUED BODY WORN CAMERA DID NOT INITIATE DUE TO AN UNKNOWN TECHNICAL ERROR.
HAVE WE HEARD THAT BEFORE? THERE IS NO AUDIO ON ANY OF THE VIDEO IN THE BODY.
CAMERA DID NOT TURN ON UNTIL IT INITIATED IT.
LATER IN THE CONTACT I, THE DRIVER FOR HER LICENSE REGISTRATION, PROOF OF INSURANCE, AND SHE HAD A VALID DRIVER'S LICENSE.
SO, UH, I RECOGNIZED MONTGOMERY LIKELY ALIGNED WITH SOVEREIGN CITIZEN IDEOLOG IDEOLOGIES.
BASED UPON MY TRAINING AND EXPERIENCE WITH SOVEREIGN CITIZENS, THEY ARE OFTEN EXTREMELY ARGUMENTATIVE, CAN OFTEN BE EXTREMELY VIOLENT TOWARD LAW ENFORCEMENT AND ARE KNOWN TO OFTEN BE ARMED.
DUE TO THIS, I CALLED FOR A SECOND OFFICER TO COME TO MY LOCATION FOR EXTRA SECURITY.
I MADE IT, ORDERED HER TO STOP ERICA TO STOP SEARCHING OR REACHING FOR OBJECTS IN THE CAR AND TO STEP OUTTA THE VEHICLE.
AND SHE REACHED FOR THE CONTROLS OF HER DRIVER'S SIDE,
[00:35:02]
UH, DOOR AND BEGAN ROLLING THE WINDOW UP I THE DOOR.AND BEFORE SHE COULD LOCK IT, AND SHE IMMEDIATELY LUNGED FOR THE SPACE BETWEEN HER SEATS AGAIN.
IN RESPONSE, I LUNGED INTO THE VEHICLE TO ATTEMPT TO CONTROL HER HANDS AND DEFEAT THE SEATBELT.
FEARING SHE MAY HAVE BEEN REACHING FOR A CONCEALED WEAPON AS I DID, I CAME TO LAY ACROSS HER TORSO AREA, FACING HER AND PRESSING MY BODY AGAINST HER SEAT, THE SEAT WITH MY BODY TO CONTROL HER AND PREVENT HER FROM ACCESSING A WEAPON.
AS I WAS TRYING, UH, TO DEFEAT THE SEATBELT, I COULD FEEL SEVERAL STRIKES AGAINST MY TORSO THAT I RECOGNIZED AS CLOSED FIST STRIKES, WHICH IS AMAZING WITH ALL THAT ARMOR, BODY ARMOR, UH, MONTGOMERY ALSO WAS WRITHING IN CONTROLLING HER BODY AND TWISTING AWAY FROM ME, UH, AS SHE, UH, AS I ATTEMPTED TO CONTROL HER, MAKING IT DIFFICULT TO GAIN CONTROL OF HER.
AND YOU CAN SEE, UM, HER VIDEO ON RUMBLE.
THANK YOU EDWARD PERRY, FOLLOWED BY LONNIE LILY.
I'VE LIVED HERE FOR QUITE A WHILE, SINCE THE NINETIES.
CAN YOU BRING THE MIC UP, SIR? YEAH, A LITTLE SHORTER THAN I WAS.
ANYWAY, I'VE BEEN HERE SINCE THE NINETIES.
I VISITED SEDONA IN THE SEVENTIES, DECIDED TO LIVE HERE, RETIRE, HAVE A NICE PEACEFUL LIFE.
WELL, ANYWAY, I'M A FRIEND TO ERICA MCRAY.
UH, I WITNESSED OVER A YEAR OF HEARINGS AND HER ANGUISH FROM BEING PROSECUTED BY A CON KANGAROO COURT SYSTEM FROM DAY ONE.
SHE WAS TOLD BY HER DEFENSE ATTORNEY TAKE A PLEA IN ADMITTING TO AGGRAVATED ASSAULTS ON TWO POLICE OFFICERS IN ORDER TO GET A REDUCED SENTENCE OF FOUR YEARS IN PRISON.
WHEN YOU'RE INNOCENT, YOU DON'T DO THAT.
SO SHE REFUSED TO TAKE THE PLEA STOOD UP FOR HER RIGHTS AND WHAT IS RIGHT.
AS A RESULT, SHE WAS GIVEN A MAXIMUM PENALTY BY A JUDGE THAT HELD A TRIAL WITH ERICA ABSENT, WITH SERIOUS ILLNESS.
AND FROM WHICH THE VIDEO AND DOCUMENTARY EVIDENCE AND TESTIMONY PRESENTED BY THE OFFICERS HAS DELIBERATELY BEEN WITHHELD IN THE PROSECUTORIAL COVERUP AND CANNOT BE ACQUIRED BY US OR PUBLIC RECORDS.
I MYSELF WAS A VICTIM OF THEIR EXTREME HOSTILITY AND MISCONDUCT.
WHEN I DROVE ERICA TO BE TAKEN BACK TO JAIL, I WAS HER BAIL BONDSMAN.
THIS IS A LEGAL ACT AND SHE WAS THE DEFENDANT THAT WAS IN MY CHARGE.
OH, THERE'S NO WARRANT FOR HER ARREST HERE.
SO WE CAME BACK TO SEDONA AND WE WERE PULLED OVER, PUT UP IN THE B'S PARKING LOT.
I WAS HELD AT GUNPOINT BY A LINEA LINE OF SEDONA POLICE OFFICERS WITH A RED LASER DOTS AND THEIR WEAPONS TRAINED ON ME AND ERICA, I WAS HANDCUFFED, BLEEDING, THROWN IN THE BACK OF A SQUAD CAR, INJURED AND BLEEDING FROM THEIR BRUTALITY WHILE THEY COMMITTED FELONY CRIMES, WHICH IT IS A FELONY CRIME, TO PREVENT ME HER BAIL BONDSMAN FROM RETURNING HER TO THE JAIL.
I WAS HEADED BACK TO THE, UH, SEDONA POLICE DEPARTMENT TO TURN HER IN THERE.
UH, AND THEY PREVENTED ME FROM DOING THAT.
I HAD THE LEGAL DUTY AS A BAIL BONDSMAN TO PREVENT PRESENT HER TO THEM.
ONCE THEIR SERGEANT FIGURED IT OUT, HE YELLED AT THEM FOR ME TO BE LET GO.
OTHERWISE, I MIGHT BE IN JAIL AND PRISON.
NOW, MYSELF, ERIC MONTGOMERY WAS CONVICTED OF METH, MULTIPLE FELONY CHARGES OF KNOWINGLY, RECKLESSLY AND WITH INTENTION USING A DEADLY WEAPON CAPABLE OF CAUSING DEATH OR SERIOUS PHYSICAL INJURY THAT INCLUDES A REASONABLE RISK OF DEATH, SERIOUS OR PERMANENT DISFIGUREMENT, SERIOUS IMPAIRMENT OF HEALTH OR LOSS OF PROTRACTED IMPAIRMENT OF THE FUNCTION OF ANYBODY, LIMB OR ORGAN.
NONE OF THESE CONDITIONS EXISTED IN HER PROSECUTION ON ANY OF THE FELONY CHARGES.
FOLLOWED BY TIM BUSH, MADAM MAYOR, VICE MAYOR, COUNSELORS, ANNETTE, THE CITY TEAM.
I'M A 43 YEAR RESIDENT HERE IN SEDONA.
AND I WANT TO TAKE THIS OPPORTUNITY TO PERSONALLY THANK YOU AND THE CITY AND THE CITY COUNCIL FOR HAVING THE CITY BRUSH PICKUP.
I'VE USED IT FOR THE LAST TWO YEARS AND WANTED
[00:40:01]
TO SAY THANK YOU.THANK YOU FOR DOING THIS AND THANK YOU TO TOURISM FOR MAKING THIS POSSIBLE.
AND I WASN'T, UM, I WAS GONNA END THERE, BUT I THINK ALSO, I THINK IT'S PRUDENT FOR ME TO, AS A RESIDENT THAT'S HERE BEFORE THE CITY, TO THANK ALL THE COUNCIL MEMBERS, ANNETTE AND YOU AND YOUR TEAM.
COUNCIL IS THE, BASICALLY A VOLUNTEER POSITION.
WE DON'T SEE EYE TO EYE ON A LOT OF ISSUES, BUT I JUST WANNA SAY THANK YOU FOR ALL THAT YOU DO IN REPRESENTING US AND BEING OPEN TO LISTEN AND UNDERSTAND THAT I DON'T AGREE WITH A LOT OF YOUR VIEWPOINTS.
YOU DON'T AGREE WITH A LOT OF MINE, BUT WE CAN RESPECT EACH OTHER.
AND I DO RESPECT YOU GUYS BEING UP THERE.
AND I THANK YOU AND ANNETTE, YOU AND YOUR TEAM AND EVERYBODY OVER HERE, THANK YOU FOR ALL YOU DO FOR THE CITY.
LONNIE TIM, FOLLOWED BY ANOTHER TIM, TIM PERRY.
I'VE BEEN HERE FOR ABOUT FOUR YEARS IN SEDONA.
I SPOKE HERE A COUPLE MONTHS AGO.
I HAVEN'T COME BACK IN 'CAUSE THE DAY THAT I DID, I WAS TALKING ABOUT THE POLICE DEPARTMENT HERE.
AND SINCE THAT DAY, THEY'VE BEEN UP AND DOWN MY BLOCK, SPOTLIGHTING MY HOUSE ALL HOURS A NIGHT, SCARING MY CHILDREN, BEATING ON MY DOORS, LOOKING FOR SOMEBODY THAT DOESN'T LIVE THERE.
I'M SCARED TO LIVE IN THIS TOWN NOW.
THIS COUNSEL NEEDS TO LISTEN UP.
THE CHIEF OF POLICE, THE LAST CHIEF OF POLICE THAT WAS HERE, SPOKE AND SAID THAT FOLEY WAS NOT READY TO BE POLICE CHIEF.
YOU GUYS SEE THIS CIRCLE OF CHAOS, THE LAWSUITS, THE OFFICERS COMPLAINING, THE WHOLE SHEBANG.
IT'S GOING, YOU GUYS ARE FIGHTING LAWSUITS RIGHT NOW BECAUSE THE OFFICER'S COMPLAINING ABOUT, WHAT IS IT HOSTILITY IN IN THE POLICE DEPARTMENT? WELL, IT'S, IT'S, IT'S OUT ON THE STREETS TOO.
EVERY STOP, MY FIANCE WAS HELD DOWN TOPLESS BY OFFICER SANTOS.
HE ELBOWED HER IN THE FACE AND KNEE HER IN HER ABDOMEN BECAUSE SHE WAS YELLING AT HER CHILD FOR STEALING HER PHONE AND LOCKING HIMSELF IN HIS BEDROOM.
THEY DIDN'T CARE WHAT, WHAT SHE WAS DOING, WHY SHE WAS DOING IT.
THEY STRIPPED HER CLOTHES OFF AND BEAT THE CRAP OUT OF HER, THEN CHARGED HER WITH A FELONY.
HER FAMILY'S BEEN HERE FOR 50 YEARS NOW.
SHE'S A CONVICTED FELON, NEVER HAD CHARGES BEFORE.
GAIA 83 YEARS OLD, ALL OF A SUDDEN DECIDES TO START FIGHTING COPS.
HE COULDN'T HANDLE HER PUNCHING HER AS HE PRESSED HIS BODY UP AGAINST HER.
HOW WAS SHE ABLE TO ASSAULT HIM WITH HIS BODY? PRESSED UP AGAINST HER? DIDN'T HAPPEN.
SO NOW WE HAVE THIS CASE WHERE WE'VE GOT THIS JOURNALIST DOWN THERE.
HE WAS OVER HERE EXERCISING HIS FIRST AND FOURTH AMENDMENT.
THEY TRESPASSED HIM FROM A PUBLIC SIDEWALK.
THE OFFICER WILLERSON CALLED THE CHIEF ON CAMERA AND THEY STILL TRESPASSED HIM.
SO YOU GOTTA SPEND $37,000 TO TRAIN OFFICERS THAT SHOULD HAVE BEEN DONE FOUR YEARS AGO BEFORE SHE STARTED THE JOB.
THOSE JOURNALISTS ARE FLOCKING TO THIS TOWN AND THEY'RE GONNA KEEP DOING IT, AND THEY'RE GONNA KEEP FILING LAWSUITS.
THAT GUY, THAT $37,000, IT IS NOTHING COMPARED TO THE LAWSUIT YOU'RE GONNA GET FOR TRESPASSING.
A JOURNALIST FOR EXERCISING HIS FIRST AND FOURTH AMENDMENT RIGHTS.
YOU DO NOT OWN A PUBLIC SIDEWALK.
BY THE WAY, ERICA MONTGOMERY, HAVE YOU GUYS MET HER? ALL SHE WANTS TO DO IS CRY AND HUG PEOPLE.
THAT'S, THAT'S, YES, THE ONLY AGGRESSIVE PERSON THERE IN THAT POLICE DEPARTMENT IS EVERY OFFICER UNDER HURT.
NOW I'M LEAVING TOWN TOO, BY THE WAY, BECAUSE I DON'T WANT THE INTIMIDATION FROM THIS POLICE DEPARTMENT, TIM PERRY.
AND THE LAST CARD I HAVE IS MICHAEL JAMES LONG, IF ANYBODY ELSE WISHES TO SPEAK, PLEASE FILL OUT A CARD NOW.
MY NAME IS TIM PERRY AND I LIVE IN SEDONA IN TONIGHT'S INSTALLMENT OF THE LIES TOLD BY THE CITY OF SEDONA.
WE WILL BEGIN BY HIGHLIGHTING THE RECENT FALSEHOODS OF OUR DEAR MAYOR HOLLY PLU.
OVER AND OVER AGAIN, HOLLY PLU HAS TOLD US HOW MUCH SHE WANTED THE PUBLIC TO HAVE A VOICE ON THE FUTURE OF THE CULTURAL PARK.
SHE EVEN REFUSED TO VOTE FOR THE CONCENTRATION CAMP BECAUSE 17% OF VOTERS SAID THEY DIDN'T WANT IT.
WELL, A LOT MORE THAN 17% OF SEDONA VOTERS HAVE JUST SAID THEY WANT NO HOUSING ON THE CULTURAL PARK VIA THEIR SUPPORT
[00:45:01]
OF THE INITIATIVE PROCESS.AND HOLLY PLU HAS VOTED TO FLUSH THEIR SIGNATURES.
DEMOCRATICALLY ACQUIRED DOWN THE TOILET BECAUSE WITH HER SUPPORT FOR THE CITY'S LAWSUIT AGAINST THE INITIATIVE, SHE'S HAD TWO WEEKS TO MAKE A STATEMENT DISTANCING HERSELF FROM THIS ANTI-DEMOCRATIC ACTION SHE HAS NOT DONE.
SO WE KNOW EXACTLY WHERE YOU STAND NOW, HOLLY, NOT SO MASTER SECRETARY.
THE MAXIM IS THE MAXIMUM OF THE LAW IS SILENCE GIVES CONSENT.
MEANWHILE, SHE AND THE REST OF THIS COUNCIL ARE ENGAGING IN THE ADDITIONAL LIE OF PRETENDING THAT THIS LAWSUIT AGAINST DEMOCRACY IS SOMEHOW ABOUT ZONING.
WELL, WE KNOW THAT'S A STEAMING KETTLE OF HORSE MANURE BECAUSE IF THIS INITIATIVE WERE WRITTEN IN THE SAME WAY YET REQUIRED THAT THE CITY BUILD HOUSING AT THE CULTURAL PARK, YOU GUYS WOULD ALL BE, UH, LINING UP TO CHEER IT ON AND SUPPORT IT.
AND THAT LION TURN RESTS ON THE EVEN DEEPER SYSTEMIC AND INSTITUTIONAL LIE THAT KEEPS THIS WHOLE CITY RUNNING.
THE PASSIONATE CONVICTION OF THIS COUNCIL AND STAFF, THAT THEY REQUIRE NO DUE PROCESS, NO DEMOCRATIC PROCESS, NO RULE OF LAW BESIDES THEIR OWN DIVINE WILL, AND KNOWING WHAT'S BEST FOR THE REST OF US AS THE ANTI-DEMOCRACY ACTIVIST.
STEVE EGNER RECENTLY EXPRESSED IT WELL, IF, IF A MAJORITY OF VOTERS WANTED THE FIRE DISTRICT DISSOLVED, YOU WOULDN'T DO THAT.
WELL, IF A MAJORITY OF VOTERS WANTED IT, THEN YES, IT WOULD BE DONE WITH MAJORITY CONSENT.
CONSENT ALONE GIVES LEGITIMACY.
NO ACT OF A GOVERNMENT THAT IS UNDERTAKEN WITHOUT THE CONSENT OF THE PEOPLE IS OR EVER CAN BE LEGITIMATE.
AND WE, THE PEOPLE NEVER WILL AND NEVER CAN GIVE OUR CONSENT TO AN ACTION THAT WOULD PURPORT TO DEPRIVE US OF THE RIGHT OR ABILITY TO GIVE THAT CONSENT.
THIS COUNCIL HAS BLATANTLY TORN UP THE SOCIAL CONTRACT IN THE FACE OF EVERYONE IN SEDONA WITH ITS OPPOSITION TO THE DEMOCRATIC PROCESS.
AND I WOULD LIKE TO INVITE EVERYONE ELSE WHO LIVES IN THIS TOWN TO JOIN IN AN EFFORT TO RECALL EVERY SITTING MEMBER OF THIS COUNCIL WHO IS NOT UP FOR ELECTION THIS YEAR.
I'M AN ARIZONA STATE CITIZEN AND HAVE BEEN DOMICILED HERE ON THE LAND OF ARIZONA FOR OVER NINE YEARS.
MY MOTHER'S MAIDEN NAME IS GRAHAM.
IT IS ONE OF THE OLDEST SCOTTISH CLANS AND LONGTIME FREEMASONS, THE SAME AS THE GRAHAM THAT OWNS THE RED ROCK NEWS.
THE SAME GRAM THAT IS THE MOST MILITANT PRO INTERVENTIONALIST IN THE SENATE.
THE SAME GRAMS THAT SAT ON THE BILDERBERG GROUP.
I'M ONE OF THE VERY FEW IN MY FAMILY THAT'S NOT A MILLIONAIRE.
WHAT YOU HAVE STEPPED INTO IS AN INTER MASON WAR.
IN 2016, THE MASONS TRIED TO RECRUIT ME AND WE SPOKE PHILOSOPHY AND I QUOTED MANLY P HALL AND ALBERT PIKE, TWO FAMOUS 33RD DEGREE MASONS.
THEIR RESPONSE WAS A SUDDEN RECOIL FEAR, A SWIFT EXIT AND ATTACKS, HENCE FORTH.
I'VE HAD TWO WIVES KIDNAPPED AND DRUGGED UNDER PSEUDO LEGAL PRETENSES.
I'VE ALSO HAD MY 8-YEAR-OLD GODDAUGHTER KIDNAPPED TOO.
THEY JUST SO HAPPENED TO GIVE HER AN ALLERGIC SUBSTANCE AND SHE DIED.
AS FOR MY WIVES, THEY WERE SIMPLY GIVEN MIND ALTERING DRUGS THAT COMPLETELY CHANGED THEIR PERSONALITY AND GAVE THEM MULTIPLE PERSONALITIES.
EFFECTIVELY SPEAKING, THEY WERE KIDNAPPED AND SPIRITUALLY MURDERED.
THE THIRD POLITICAL PARTY THAT EVER EXISTED IN AMERICA WAS THE 1827 ANTI MASON PARTY.
KYLE CLIFTON AT KYLE IS BASED INFILTRATED A MASON LODGE HERE IN ARIZONA, EXPOSING WITH VIDEO THE OATH TO CONCEAL THE SECRETS OF MASONRY AND ALSO TO CONCEAL THE MIS DUCKS OR MISDEEDS OR ILLEGAL CONDUCTS OF OTHER MASONS OR ELSE QUOTE, HAVE THEIR BODY SEVERED IN HALF AND BURNED.
THERE IS, THIS IS A DIRECT CONFLICT WITH THE INTEREST OF LAW ORDER IN THE CONSTITUTION OF THE SEVERAL STATES AS WELL AS THE CONSTITUTION OF THE UNION.
THIS IS ALSO A REAL CLEAR AND PRESENT DANGER TO OUR UNION AND STATE SOVEREIGNTY.
BUT MASONS ARE NOT THE ONLY PROBLEM NOR THE ONLY SECRET SOCIETY WITH CONFLICTS OF INTEREST TO AMERICAN IDEALS.
AND SO I ANNOUNCED THE REBIRTH ALMOST 200 YEARS LATER AS THE 2026 ANTIS SECRET SOCIETY PARTY, OR HENCEFORTH AND FORMALLY THE CONSTITUTIONAL TRANSPARENCY PARTY TO UNDERSTAND WHY AMERICA HAS BEEN CONTINUALLY LOSING WAR SINCE WORLD WAR II.
I RECOMMEND READING TACTICS OF THE CRESCENT MOON BY H JOHN POOL, WHICH DISTINCTLY AND SUCCINCTLY GOES ON TO SAY EXCESSIVE AND UNWARRANTED FORCE GENERATES EXTREMISTS AND RADICALIZES MODERATES FROM OTHERWISE INDIFFERENT OR NEUTRAL PEOPLES.
THIS APPLIES NOT ONLY TO THE WAR ON TERROR, BUT ALSO THE WAR ON THE CONSTITUTION BY THE POLICE STATE DOMESTICALLY AS WELL.
THE BOOK GOES ON FURTHERMORE TO SAY THAT OPPRESS THE MORE UNREASONABLE, OPPRESSIVE, AND ESPECIALLY VIOLENT, THE ACTIONS OF DISPROPORTIONATE REPRISE A LAW, THE MORE IT CATALYZES PEOPLE OF THE OPPOSITE SIDE.
AND SO DESPITE MILITARY SUPREMACY, IT CREATES CULTURAL DEFEAT.
I TRIED TO GIVE YOU, TRIED TO FORGIVE YOU FOR YEARS.
I WAS A FUNCTIONAL NOBODY WITH VOWS OF POVERTY, DOING SPIRITUAL WORKS FOR FREE ONLY TO HAVE, BE REPEATEDLY KIDNAPPED.
HAVE MY FRIEND KILLED GODDAUGHTER, KILLED WIVES, DRUGGED CHURCHES, ATTACKED ASSEMBLY SUPPRESSED BUSINESSES, SLANDERED AND SHUT DOWN PERSONAL LIBEL.
AND EVEN TAKEN TO THE STEP OF DEATH BY THE BRUTALITY OF THE CORPORATION
[00:50:01]
HERE ITSELF, MY HAND HAS BEEN FORCED.I CANNOT REMAIN A MONK ANYMORE.
I MUST BECOME POLITICALLY ACTIVE.
I'M ACTUALLY COMMANDED BY MY HONOR CODE NOT TO SPEAK MORE THAN THREE WORDS TO ANYONE OUTSIDE OF HONOR.
HOWEVER, GIVEN THE INCREDIBLE VIOLENCE, INSANITY, AND CONSTITUTIONAL TORT TRESPASS FOR ALMOST A DECADE UPON THE MULTITUDES, I AM LEFT WITH NO OTHER CHOICE.
I FORMALLY ACCUSED THE CITY OF SEDONA AND THEIR FINANCIAL ACCOMPLICES, THE SEDONA POLICE DEPARTMENT AND THE SEDONA MAGISTRATE COURT OF CONSPIRACY TO DEPRIVE THE PEOPLE OF THEIR CONSTITUTIONAL RIGHTS.
AND I REPRESENT OVER 1000 SUCH PEOPLE.
[9.a.Discussion/possible action regarding items pulled off “3. Consent Items”.]
TO NINE A DISCUSSION, POSSIBLE ACTION REGARDING ITEMS PULLED OFF THE CONSENT.UH, TIM, DO YOU WANNA SPEAK TO THE ITEM THREE E.
MY NAME IS TIM PERRY AND I LIVE IN SEDONA.
UH, I WOULD SUPPOSE THE COUNCIL WELCOMES THE OPPORTUNITY TO APPROVE THIS MAT FORCE ANTI-DRUG PROCLAMATION IS A FURTHER DEMONSTRATION OF YOUR TOTAL SCIENTIFIC IGNORANCE.
HOWEVER, SCIENCE IS REAL, WHETHER YOU LIKE IT OR NOT.
YOU SEE, THE SIMPLE FACT IS THAT PUTTING MONOAMINES INTO A HUMAN BRAIN, REGARDLESS OF THE AGE OF THAT BRAIN, INCREASES COGNITION, SOCIALITY, AND EMPATHY.
ALL THE DRUGS THAT MAT FORCE WANTS TO KEEP CHILDREN FROM HAVING ACCESS TO ARE EITHER MONOAMINE ANALOGS OR INCREASED CIRCULATING LEVEL OF MONOAMINES IN THE HUMAN BODY, WHICH MEANS THAT MAT FORCE IS SYSTEMICALLY TRYING TO IMPAIR THE COGNITION OF CHILDREN.
ONE OF THE FEW TRUTHFUL STATEMENTS MAT FORCE HAS EVER MADE IS TO THE EFFECT THAT THE CHILD BRAIN IS MORE CHEMICALLY FLEXIBLE AND ADAPTABLE THAN THE ADULT BRAIN, WHICH IS OF COURSE TRUE, AND WHICH MEANS THAT CHILDREN ARE DISPROPORTIONATELY MORE DAMAGED THAN ADULTS BY NOT HAVING ACCESS TO COGNITION ENHANCING RECREATIONAL DRUGS.
IT FURTHER IMPLIES THAT MAT FORCE IS SYSTEMICALLY TRYING TO WORK TOWARDS A FUTURE SOCIETY AND A FUTURE GENERATION IN WHICH INDIVIDUALS WILL BE EVEN MORE STUPID AND MORE VIOLENT THAN THEY ARE TODAY.
NOW, WHY WOULD MAT FORCE AN ORGANIZATION SUPPOSEDLY ALLIED WITH ALL THESE POLICE DEPARTMENTS WANT TO MAKE AMERICAN SOCIETY MORE VIOLENT AND MORE STUPID? WELL, THE ANSWER IS THAT A POPULATION WHERE PEOPLE ARE MORE LIKELY TO BE MORE VIOLENT, MORE STUPID, IS ONE WHERE YOU HAVE BETTER EXCUSES TO SET UP A TOTALITARIAN REGIME TO CONTROL 'EM.
MAT FORCE IS NOTHING BUT A FRONT ORGANIZATION FOR BIG GOVERNMENT, A PR CAMPAIGN THAT USES SCARE TACTICS THAT HAVE LONG SINCE BEEN DISCREDITED AND MISINFORMATION TO PUSH FOR BIGGER BUDGETS, MORE STAFF AND MORE AUTHORITY FOR THE AGENCIES TRYING TO TAKE OUR FREEDOMS AWAY.
AND ALL BASED ON LIES ABOUT DRUGS, THE MODERATE USE OF DRUGS IS JUST AS HEALTHY FOR CHILDREN AS IT IS FOR ADULTS.
AND THE MAT FORCE AGENTS WHO SAY ANYTHING DIFFERENT ARE MALICIOUS LIARS.
WE ALL KNOW IF WE'VE READ ANY HISTORY THAT THE WAR ON DRUGS IS ROOTED IN RACISM.
IN THE LAST CENSUS, THERE WERE JUST ABOUT 1400 BLACK PEOPLE IN YAVAPAI COUNTY, LESS JUST OVER HALF A PERCENT.
AND YET SOMEHOW MATT FORCE ALWAYS MANAGES TO DREDGE UP A BLACK LADY TO COME UP HERE AND FRONT FOR ITS RACIST PROPAGANDA.
COUNSELORS, IF YOU VOTE TO APPROVE THIS PROCLAMATION, YOU WILL ONCE AGAIN CONFIRM TIMOTHY LEARY'S ASSERTION THAT THE PSYCHOACTIVE SUBSTANCES ARE HIGHLY DANGEROUS TO THOSE WHO DO NOT USE THEM.
AND YOU WILL DEMONSTRATE THAT YOU PERSONALLY HAVE BEEN NOT DOING, HAVE NOT BEEN DOING NEARLY ENOUGH DRUGS.
WOULD SOMEONE LIKE TO MAKE A MOTION? I CAN MAKE THAT MOTION, MAYOR.
UM, I MOVE TO APPROVE THE MATT FOREST PROCLAMATION RECOGNIZING APRIL 20TH THROUGH 25TH.
[9. b. AB 3341 Discussion/possible action regarding approval of a Construction Contract with AMKA Services, LLC for the Manhole Rehabilitation Project in an amount not-to-exceed $320,865.36.]
B AB 33 41, DISCUSS DISCUSSION, POSSIBLE ACTION REGARDING APPROVAL OF A CONSTRUCTION CONTRACT WITH A MKA SERVICES LLC FOR THE MANHOLE REHABILITATION PROJECT IN THE AMOUNT NOT TO EXCEED $320,865 AND 36 CENTS.UH, ROXANNE HOLLAND, DIRECTOR OF WASTEWATER AND IAN K KRA KRA.
THANK YOU, UH, PROCUREMENT OFFICER.
UM, I'M HERE TO PRESENT THE WASTEWATER MANHOLE REHABILITATION
[00:55:01]
PROJECT.WE'RE ASKING FOR APPROVAL OF A CONSTRUCTION CONTRACT, UM, TO, UH, REHAB 49 MANHOLES THROUGHOUT THE CITY.
UM, THE, THE REHABILITATION CONSISTS OF, UM, COATING CERTAIN MANHOLES, REPLACING, UH, FRAMES, LIDS, COLLARS, UM, AND JUST BRINGING DETERIORATED MANHOLES UP TO, TO GOOD WORKING ORDER.
UM, THE PROJECT WAS BUDGETED AT $200,000.
UM, THAT WAS JUST KIND OF A GUESS.
UM, WHEN WE BUDGETED IT, WE DID NOT HAVE A, UM, MANHOLES IDENTIFIED SPECIFIC MANHOLES.
WE DO BUDGET FOR MANHOLE REHABILITATION IN OUR, UM, OPERATING BUDGET EVERY YEAR, WHICH ONLY GETS US ABOUT FIVE MANHOLES ON AVERAGE.
UM, AND SO WE KNEW THAT WE WERE GONNA BE IDENTIFYING MORE THROUGH OUR CCTV PROGRAM, UM, AND THAT WE DID THIS FIRST YEAR THAT WE'VE BUDGETED.
SO WE, WE FOUND 49 THAT NEED REHAB.
UM, I AM PROPOSING TO USE, UM, FUNDS FROM ANOTHER PROJECT THAT WAS IN DESIGN THAT WE'VE STOPPED DESIGN ON SINCE WE'VE GOTTEN, UM, DIRECTION TO MOVE FORWARD WITH OUR RECHARGE WELLS.
UM, THAT PROJECT WAS AN IMPROVEMENT TO OUR CURRENT RECHARGE WELL BACKWASH OR FILTER SYSTEM.
WE WERE GONNA ADD A BACKWASH SO WE DIDN'T HAVE TO USE DISPOSABLE FILTERS IN THAT SYSTEM.
BUT SINCE WE'LL BE EXPANDING THAT, WE FIGURED WE'D STOP THAT PROJECT BEFORE WE GET TOO MUCH TOO FAR ALONG, UM, AND, AND, UM, NOT HAVE DUPLICATION OF EFFORTS ON DESIGN AND JUST INCORPORATE THAT INTO THE FUTURE PROJECT.
SO WE HAVE $153,000 THAT WON'T BE SPENT THIS YEAR ON THAT, AND I'M PROPOSING TO USE THAT BUDGET TO, TO COVER THE, THE, THE, UM, DIFFERENCE FROM WHAT WAS BUDGETED TO THIS CONTRACT AMOUNT.
UM, THE PROJECT WAS BID OUT BY IAN.
UH, WE HAD A LOT OF VENDORS, UM, LOOK AT IT.
WE HAD SET 47 UNIQUE DOWNLOADS.
UH, WE ENDED UP GETTING THREE BIDS AND THE, UM, A MKA SERVICES WAS THE LOW BID.
UM, WE'VE CONFIRMED WITH THEM THAT THEIR BID IS, THEY'RE COMFORTABLE WITH THE NUMBER THAT THEY PUT FORWARD AND, UH, WE ARE RECOMMENDING APPROVAL OF THE CONTRACT TONIGHT.
SO TAKE ANY QUESTIONS IF YOU HAVE THEM.
OKAY, ANY COMMENTS? I'D LIKE TO MAKE A MOTION.
I MOVE TO APPROVE THE CONSTRUCTION CONTRACT WITH A MKA SERVICES LLC FOR THE MANHOLE REHABILITATION PROJECT IN AN AMOUNT NOT TO EXCEED 320,000, NO, SORRY, IT'S A VERY SMALL PRINT.
IS THAT CORRECT? TO FIVE FIVE.
SORRY, THE NUMBERS YOU READ WAS INCORRECT.
COULD I, COULD YOU, WHAT'S THE NUMBER? 320,865.
320,000 HOLD ON, WE HAVE A CARD.
OKAY, I WITHDRAW MY MOTION TEMPORARILY.
DAVID, IS THIS SOMETHING YOU WANNA TALK ABOUT? I WROTE DOWN
I'M GONNA LET CHARLOTTE MAKE THE MOTION ABOUT IF I JUST GIVE YOU THE NUMBER.
I MOVE TO APPROVE THE CONSTRUCTION CONTRACT WITH A MKA SERVICES LLC FOR THE MANHOLE REHABILITATION PROJECT IN AMOUNT NOT TO EXCEED 320,300 $865 AND 36 CENTS SUBJECT TO APPROVAL OF THE WRITTEN CONTRACT BY THE CITY ATTORNEY'S OFFICE.
[9.c. AB 3327 Discussion/presentation/possible direction regarding a tourism update including results of the Winter 2025/2026 marketing campaign and strategy for the Summer 2026 marketing campaign. ]
UH, DAVID, I'M GONNA CHANGE IT TO 33 27, WHICH IS WHAT I ASSUME YOU WANT.YOU DON'T HAVE TO FILL OUT A NEW CARD.
AND BECAUSE WE ARE READY ON AB 33 27 DISCUSSION, PRESENTATION, POSSIBLE DIRECTION REGARDING A TOURISM UPDATE, INCLUDING RESULTS OF THE WINTER 20 25, 20 26 MARKETING CAMPAIGN AND STRATEGY FOR THE SUMMER 2026 MARKETING CAMPAIGN.
GUYS NEED A MINUTE? YEAH, JUST OKAY.
[01:00:39]
HEY CHRISTIAN, CAN YOU HEAR US? CAN YOU HEAR US? CHRISTIAN, CHRISTIAN, CAM.TEAMS. CHRISTIAN, DO YOU WANT TO QUICKLY INTRODUCE YOURSELF TO CITY COUNCIL AND THE ATTENDEES? YEAH, HELLO, UH, COUNCIL, UH, MY NAME'S CHRISTIAN BULK.
I'M, UH, ONE OF THE PARTNERS AND DIGITAL DIRECTOR AT DVA ADVERTISING AND PR, UM, OUT OF BEND, OREGON.
THANKS FOR JOINING US CHRISTIAN.
UM, AND THIS FOR THE AUDIENCE, I AM ANDREW GROSSMAN, TOURISM MANAGER HERE WITH THE CITY OF SEDONA.
UH, WE'RE HERE TODAY TO TALK TO YOU ABOUT OUR WINTER 25 26 DESTINATION MARKETING CAMPAIGN RESULTS, AND THEN PRESENT TO YOU THE STRATEGY FOR THE SUMMER 2026 DESTINATION MARKETING CAMPAIGN.
ONE QUICK ANNOUNCEMENT JUST FOR THE FOLKS IN THE ROOM.
WE ARE HOSTING A SERIES OF, UH, THE FUTURE OF TOURISM AND THE SEDONA EXPERIENCE COMMUNITY INPUT SESSIONS.
THE FIRST ONE IS NEXT WEEK, APRIL 21ST FROM SIX TO EIGHT AT THE HUB AT POSSE GROUNDS, AND THE SECOND SESSION IS MAY 13TH FROM 10:00 AM TO NOON.
SAME PLACE, THE HUB AT POSSE GROUNDS.
WE ENCOURAGE ALL RESIDENTS AND TOURISM BUSINESSES TO ATTEND TO GIVE YOUR INPUT ON AGAIN, THE FUTURE OF TOURISM AND THE SEDONA EXPERIENCE.
UM, SO TO KICK US OFF, I'M GONNA JUMP INTO THE WINTER 20 25, 20 26 CAMPAIGN RESULTS.
SO AS A REMINDER, UM, FOR THIS CAMPAIGN, WE WERE UTILIZING THE REDEFINED DESERT CAMPAIGN CONCEPT, UM, FOR THOSE KEEPING TABS, THAT WAS THE THIRD TIME WE'VE EXECUTED THAT CONCEPT.
THE SUMMER CAMPAIGN WILL ALSO BE BE PROPOSING THIS CONCEPT AGAIN.
UM, BUT REALLY WHEN WE LOOKED AT, YOU KNOW, HOW ARE WE CONTINUING TO REFINE THE WAY WE EXECUTED ON THIS CONCEPT, UM, REALLY LOOKING AT THE TRENDS, AND I THINK WE HEARD IT FROM THE VICE MAYOR OF JUST SOME CHALLENGES WITH INTERNATIONAL INBOUND TRAVEL, BUT WE'VE ALSO SEEN THE INVERSE OF KIND OF DOMESTIC VISITATION KIND OF MAYBE, MAYBE NOT FILL THE WHOLE GAP BUT START TO TREND IN A, IN A MORE POSITIVE DIRECTION.
SO REALLY PRESENTING TOED DON AS AN ALTERNATIVE TO AN INTERNATIONAL VACATION.
THAT WAS REALLY KIND OF OUR GOAL TO TRY TO DRIVE THAT THROUGH THE, THROUGH THE TARGETS THAT WE MARKETED.
UM, I THINK, YOU KNOW, ROB'S BACK THERE, ONE OF MY FAVORITE LINES WE HAD IN THIS CAMPAIGN WAS, YOU DON'T HAVE TO TRAVEL ACROSS THE WORLD TO EXPERIENCE SOMETHING OTHERWORLDLY.
I THINK THAT SORT OF LIKE COMPRISES WHAT WE WERE GOING FOR AND, YOU KNOW, I TRULY THINK SEDONA REALLY LOOKS AND FEELS LIKE ANOTHER PLANET SOMETIMES.
AND THAT'S KIND OF WHAT WE WERE LEANING INTO, UM, WINTER CAMPAIGN STRATEGY.
SO, UH, WE DID LAUNCH THE CAMPAIGN ON OCTOBER 7TH AND WE RAN IT THROUGH FEBRUARY 15TH.
UM, WE'VE BEEN COMMITTED TO PUSHING OUR CAMPAIGN TIMELINES UP A LITTLE BIT FURTHER TO GET US TO, UM, REACH THE RIGHT BOOKING WINDOW AND JUST GET THE MESSAGE OUT EARLIER.
THAT'S NOT GONNA BE DONE INTO PERPETUITY.
UM, I THINK, YOU KNOW, SOMETIME AROUND EARLY TO MID-OCTOBER FEELS LIKE THE RIGHT FIT FOR US.
UM, BUT WE'LL CONTINUE TO ASSESS THAT AS WE ASSESS EACH CAMPAIGN LAUNCH.
BUT THAT WAS 40 DAYS EARLIER THAN WE HAD LAUNCHED THE WINTER 24, 25 CAMPAIGN.
SO VERY HAPPY THAT WE WERE ABLE TO GET THIS IN FLIGHT SOONER.
UM, AS YOU REMEMBER, UH, THE TOTAL PAID ADVERTISING FOR THIS CAMPAIGN WAS $250,000.
UM, THAT WAS DUE THANKS TO YOUR APPROVAL TO INCREASE THE CAMPAIGN BUDGET BY $93,270.
DURING THE OCTOBER MEETING THAT WE HAD WHERE WE KIND OF PRESENTED, AGAIN, WE SAW A LOT OF, UH, YEAR OVER YEAR DOWN BUSINESS PERFORMANCE THAT STARTED AROUND THIS TIME LAST CALENDAR YEAR AND WAS CONTINUING THROUGH THE TIME WE PRESENTED TO YOU IN OCTOBER.
SO, UM, THANK YOU FOR LETTING US INCREASE THE SPEND ON THAT CAMPAIGN.
UM, AND THEN OUR DRIVE MARKETS ARE ALWAYS CONSISTENT.
IT'S ALWAYS PHOENIX, TUCSON, LOS ANGELES, SAN DIEGO, AND LAS VEGAS.
BUT FOR THE WINTER CAMPAIGN, OUR FLIGHT MARKETS WERE CHICAGO, SEATTLE, DENVER,
[01:05:01]
MINNEAPOLIS, NEW YORK, SAN FRANCISCO.UM, JUST NOTE, WHEN WE GET TO THE SUMMER CAMPAIGN, YOU WILL SEE DIFFERENT FLIGHT MARKETS.
WE DO ROTATE THOSE, UM, DEPENDING ON WHERE WE SEE THE BEST, UM, VALUE PROPOSITION.
UM, AND I THINK YOU'LL SEE WHEN WE GET TO THE RESULTS THAT THOSE THAT WERE REALLY COLD THIS WINTER IN THAT KIND OF UPPER MIDWEST PERFORMED PRETTY WELL FOR US FOR THE WINTERTIME.
HERE'S THE BREAKDOWN OF HOW WE SPENT THE $250,000 ACROSS DIFFERENT DIGITAL MARKETING STRATEGIES.
SO, UM, THE TOP TWO ARE THE ATTRIBUTION BASED WEBSITE ADS AND THE ATTRIBUTION BASED CTV ADS.
UM, WHEN WE START TO TALK ABOUT RETURN ON INVESTMENT AND RETURN ON AD SPEND, THAT'S ALL RELATED TO THOSE TOP TWO ROWS.
THE, THE, THE ATTRIBUTION THAT WE CAN DO FROM THOSE TYPES OF MEDIA STRATEGIES.
BUT WE WANT TO HAVE A WELL-ROUNDED APPROACH.
UM, SO WE ALSO HAD $18,000 IN PAID GOOGLE SEARCH, $40,000 IN OUT OF MARKET META ATTRACTION MESSAGE.
SO THIS IS DEFINITELY THAT KIND OF INSPIRATION COME TO SEDONA MESSAGE.
BUT THEN WE ALWAYS WANT TO HAVE THAT RESPONSIBLE TOURISM STEWARDSHIP MESSAGE AS WELL, THE EXPECTATION SETTING MESSAGE.
UM, SO THAT WAS $17,000 AND THAT IS WITHIN A 25 MILE RADIUS OF THE CITY OF SEDONA.
AND THEN ALSO IN THE PHOENIX METRO IS WHERE THAT IS WHERE THOSE ED EDUCATIONAL MESSAGES ARE SHOWN.
UM, WE ALSO INTRODUCED A NEW, UH, HIGH NET WORTH INDIVIDUAL AUDIENCE.
THIS WAS PART OF THE PROPOSAL THAT YOU ALL APPROVED TO INCREASE THE CAMPAIGN SPEND BY AGAIN, THAT ABOUT $93,000.
UM, I'M GONNA QUICKLY DESCRIBE KIND OF WHY WE DID IT AND THEN HANDED OFF TO CHRISTIAN TO DESCRIBE HOW WE DID IT.
UM, BUT ULTIMATELY, YOU KNOW, WHEN WE DID PROPOSE THAT WE WANTED TO PILOT THIS NEW HIGH NET WORTH INDIVIDUAL AUDIENCE, UM, THAT WAS DONE FROM, YOU KNOW, OUR OWN RESEARCH, OUR CONVERSATIONS WITH THE BUSINESS COMMUNITY, WANTING TO ALWAYS, YOU KNOW, MAKE SURE THAT WE'RE REPRESENTING THEM IN THE BEST WAY.
AND WE'VE ALSO SEEN A LOT ABOUT KIND OF THE KHAP ECONOMY RIGHT NOW AND HOW THOSE WITH MORE MONEY ARE TRAVELING MORE, THOSE WITH LESS MONEY ARE TRAVELING LESS, TO PUT IT IN LAYMAN'S TERMS. UM, AND THEN THROUGH THIS PILOT, UH, WE REALLY WANTED TO LOOK AT WHETHER OR NOT THIS WOULD BE WORTH PURSUING.
SO OUR GOAL WAS LIKE, ARE WE GONNA GET A GREEN LIGHT FROM IT? UM, I THINK THERE'S THINGS THAT WE HAVE IN THE PROPOSAL FOR THE SUMMER THAT SHOW HOW WE'RE APPROACHING THIS IN A MORE SOPHISTICATED WAY.
WE'RE ABLE TO IDENTIFY THE AUDIENCE AND I THINK WE'RE JUST FURTHER EXPANDING THAT.
BUT CHRISTIAN, DO YOU WANNA QUICKLY DESCRIBE WHAT WE DID TO CREATE THAT HIGH NET WORTH INDIVIDUAL AUDIENCE? YEAH, SO THE FIRST THING, UM, WE DID WAS, UM, WE TOOK A LIST FROM AMERICAN EXPRESS.
THEY HAVE A LIST OF TOP RESORTS AND HOTELS ACROSS THE UNITED STATES, ACROSS THE WORLD ACTUALLY.
UM, AND WE GEOFENCED THOSE LOCATIONS ACROSS THE UNITED STATES.
SO WHAT WE THEN DID WAS SET UP, UM, AUDIENCES BASED IN OUR MARKETS.
SO THE, THE MARKETS THAT WE WERE TARGETING, AND THEN WE'RE LOOKING FOR BEHAVIOR FROM THOSE MARKETS TO VISIT ANY ONE OF THOSE HOTELS OR RESORTS THAT WERE ON THE AMEX LIST.
AND THAT WAS, UH, LOOKING FOR THAT BEHAVIOR TO HAVE HAPPENED IN THE PAST, UM, SOMETIME IN THE LAST TWO TO THREE YEARS.
UH, SO FOLKS, UH, IN OUR MARKETS THAT VISITED ANY OF THOSE HOTELS, UH, WOULD FALL INTO OUR TARGETING FROM UM, FROM THAT BEHAVIORAL PERSPECTIVE, THERE WERE OTHER ASPECTS, UM, BEHAVIORAL ASPECTS THAT WERE ADDED, UH, TO THAT TARGETING LUXURY TRAVEL, LUXURY HOTEL TRAVELERS, UM, WELLNESS, UM, AND, UH, UH, ASPECTS AS WELL.
SO WE, IT WAS A MULTI-LAYERED APPROACH TO GET TO, UH, THIS HIGH NET WORTH INDIVIDUAL, UM, BEYOND SORT OF EXISTING, UH, HOUSEHOLD INCOME PARAMETERS.
BUT THAT'S, THAT'S IT IN A NUTSHELL.
SO JUST TO JUMP INTO SOME OF THE, UH, INITIAL RESULTS, OR SORRY, FINAL RESULTS FROM THE WINTER 25 26 CAMPAIGN, UM, WHEN YOU SEE NUMBERS ON THE LEFT, WHEN ARE FROM THE 25, 26 WINTER CAMPAIGN, WHEN YOU SEE NUMBERS ON THE RIGHT, THAT'S FROM THE 24 25 WINTER CAMPAIGN, OR TO SAY QUICKLY LEFT THIS MOST RECENT CAMPAIGN DURING THE WINTER, RIGHT? THE PREVIOUS WINTER CAMPAIGN.
UM, SO WE SAW 177,000 WEBSITE USERS THIS PAST WINTER COMPARED TO 88,000 WEBSITE USERS.
THE WINNER BEFORE, THAT'S ABOUT A LITTLE OVER A HUNDRED PERCENT INCREASE, UM, FROM AN IMPRESSION STANDPOINT, UM, WE DID SEE FEWER IMPRESSIONS FOR PAID SEARCH COMPARED TO THE PREVIOUS WINNER, BUT WE GOT A LOT MORE CLICKS COMPARED TO THE PREVIOUS WINNER.
OUR CLICK-THROUGH RATE GREW SUBSTANTIALLY THIS PAST WINTER'S CAMPAIGN, UM, COMPARED TO 2.9, THE PREVIOUS ONE.
THAT REALLY TELLS ME THAT WE FINE TUNED THE APPROACH.
UM, IF YOU RECALL LAST TIME WE PRESENTED WINNER, I BELIEVE, UM, 2.9 IS ONE OF THE METRICS HERE THAT'S BELOW INDUSTRY BENCHMARKS FROM THE
[01:10:01]
PREVIOUS WINNERS CAMPAIGN.UH, WE REALLY TOOK THAT TO HEART AND WORKED ON FINE TUNING THAT TO BRING THAT UP.
SO HAPPY TO SEE THAT WE WERE RATHER SUCCESSFUL IN DOING SO.
UM, WITH THE RECENT WINTER CAMPAIGN, UM, COST PER CLICK WAS SLIGHTLY HIGHER.
WE DID PAY MORE IN GOOGLE SEARCH THAN WE DID THE PREVIOUS WINTER.
UM, BUT I THINK WE'RE PLEASED WITH, UH, WHAT SHOWS ME THAT, AGAIN, WE'RE PERFORMING AHEAD OF INDUSTRY BENCHMARKS AND WE DEFINITELY SHOWN THAT WE FINE TUNED THE APPROACH TO PAID SEARCH.
SO, ANDREW, DO YOU WANT QUESTIONS AS YOU GO OR YOU WANT US TO WAIT? I'M HAPPY TO TAKE QUESTIONS AS WE GO.
I MIGHT JUST HAND SOME TO CHRISTIAN, BUT
UM, MOVING INTO OUR META, META OUT OF MARKET, META IN MARKET, UM, META OUT OF MARKET, UH, WE SAW SUBSTANTIALLY MORE IMPRESSIONS THIS WINTER COMPARED TO THE PREVIOUS WINTER.
UM, ALMOST 8 MILLION COMPARED TO ALMOST 2 MILLION.
UM, VIDEO VIEWS DID GO DOWN, UM, THIS WINTER COMPARED TO THE PREVIOUS WINTER.
UM, I CAN EXPLAIN WHY, UH, WE CHATTED WITH DVA AND SOUNDS LIKE META DECIDED TO UPDATE HOW IT REPORTS VIEWS.
SO WE'RE DEALING WITH SORT OF A CHANGE IN THE METHODOLOGY ON THE REPORTING.
UM, THE MOST LAYMAN WAY TO DESCRIBE IT WOULD BE THAT, UM, IF I WATCHED THE VIDEO 10 TIMES THE LAST WINNER, IT WOULD COUNT AS 10 VIEWS.
IF I WATCHED IT AT ONE TIME THIS WINTER, IT COUNTS AS ONE VIEW.
UM, THAT'S KIND OF THE ONE BULLET THAT MAKES THE MOST, LIKE E EASIEST TO EXPLAIN THE CHANGES FOR.
UM, BUT CLICKS WERE UP, UM, 117,000 COMPARED TO 71,000, UM, CLICK THROUGH RATE, UM, SLIGHTLY LOWER COMPARED TO 3.4 AND COST PER CLICK WAS SLIGHTLY HIGHER.
AGAIN, WE'RE PERFORMING BETTER THAN INDUSTRY BENCHMARKS AND, UM, JUST NICE TO SEE THAT, YOU KNOW, WE'RE ABLE TO CONTINUE TO DRIVE THAT TRAFFIC VIA CLICKS.
I'M NOT SURE I HEARD THAT RIGHT OR YOU SAID THAT RIGHT ABOUT THE VIDEOS.
I THOUGHT I HEARD YOU SAY LAST WINTER IF YOU WATCHED A VIDEO 10 TIMES, IT'S 10 VIEWS THIS WINTER.
IF YOU WATCHED IT ONE TIME, IT'S ONE VIEW.
THAT SOUNDS LIKE THE SAME THING.
10 TIMES EQUALS ONE VIEW THIS PAST WINTER, WHICH IS WHY WE WOULD EXPECT THAT VIEW RATE TO GO DOWN.
THANK YOU FOR THE CLARIFICATION.
UM, SPEAKING OF CLARIFICATIONS, I COPIED THIS WRONG.
SO FOR IN MARKET ADS IMPRESSIONS, THIS WINNER WERE 1.8 MILLION AND LAST WINNER WERE 1.5.
SO WE'RE STILL TRENDING ABOVE IN IMPRESSIONS, BUT THOSE NUMBERS, AS YOU CAN TELL, ARE THE SAME AS THE OUTTA MARKET.
I JUST INCORRECTLY COPY THOSE, SO APOLOGIES.
UM, BUT WE'RE SEEING, UH, DIRECTIONALLY IN DIRECTIONAL INCREASE FOR IMPRESSIONS.
WE SEE THE SAME CHALLENGE OF VIDEO VIEWS WENT DOWN, BUT FOR THE REASONS I DESCRIBED WITH THE CHANGES IN THE WAY THAT META REPORTS, UM, CLICKS AGAIN ARE UP AND THEN CLICK THROUGH RATE AND CPC.
SO, UM, SO HERE WE GET INTO THE ECONOMIC IMPACT OF THE CAMPAIGN.
THIS IS AGAIN, TIED TO THE ADS THAT WE CAN DO ATTRIBUTION FOR.
UM, WHAT YOU'RE SEEING HERE IS THE ATTRIBUTION THROUGH FEBRUARY 28TH.
I WANT TO BE CLEAR, THAT'S WHEN WE TURN OFF THE ATTRIBUTION.
SO REALLY LOOKING AT HOW DID THIS CAMPAIGN DRIVE ECONOMIC IMPACT DURING THE WINTER.
UM, WHAT WE FOUND WAS IT'S, YOU KNOW, 5.2 MILLION IN ECONOMIC IMPACT, WHICH GENERATED A RETURN ON AD SPEND, WHICH RETURN ON AD SPEND IS HOTEL IMPACT PLUS DESTINATION IMPACT DIVIDED BY AD SPEND.
UM, AND UH, AGAIN, LAST WINTER CAMPAIGN, SO THE PREVIOUS ONE, IT WAS 67 TO ONE.
THIS WINTER CAMPAIGNS IS 32 TO ONE.
UM, BUT IF YOU RECALL, OUR SUMMER CAMPAIGN WAS 12 TO ONE, AND THAT'S WHEN WE SPENT TIME TALKING WITH YOU ABOUT THE CHANGES TO DEVICE CAPTURE THAT HAVE BEEN SEEN IN THE WAY THAT ATTRIBUTION REPORTING IS DONE.
UM, WE'RE STILL EXPERIENCING THAT DEVICE CAPTURE, BUT UM, WE'RE STILL PLEASED WITH THE 32 TO ONE RESULT.
UM, I SAY THIS TO SAY THAT I, I DON'T THINK WE'RE GONNA GET UP TO THE PREVIOUS RETURN ON AD SPEND THAT YOU'VE SEEN IN SOME OF OUR EARLIER CAMPAIGNS, WHICH IS WHAT WE SHARED OVER THE SUMMERTIME.
UM, BUT WE'RE STILL PLEASED WITH THE WAY THAT THIS CAMPAIGN TURNED OUT.
UM, AND THEN WE DID SPEND $250,000 ON THIS CAMPAIGN, BUT WE RETURNED TWO HUNDRED AND SEVENTY EIGHT, TWO HUNDRED SIXTY $6,000 TO THE CITY, WHICH IS A 1.19 TO ONE RETURN ON TAX INVESTMENT SPEND.
UM, SO WE WERE ABLE TO BRING IN MORE IN CITY CELLS AND BED TAX THAN WE SPENT.
ARE WE TALKING TO ANY TOURISTS THAT SAY AND ASK THEM, DID YOU SEE THESE ADS? DID THEY INFLUENCE YOUR DECISION TO COME TO SEDONA? BECAUSE I, YOU KNOW, WE'RE DOING THIS WORK ON THE FRONT END AND SAYING, OKAY, WE SPENT THIS MUCH AND THEN WE GOT THIS MANY TOURISTS, THEREFORE WE'RE GETTING A RETURN OF 31 TO ONE.
UM, I MEAN, SOME OF THESE PEOPLE OBVIOUSLY WOULD'VE COME HERE EVEN WITHOUT THIS ADVERTISING.
SO ARE WE DOING ANYTHING ON THE BACK END TO TRY TO FIGURE OUT HOW VALID THIS NUMBER REALLY IS? SO MY FIRST RESPONSE WOULD BE THAT, YOU KNOW, THESE ARE AD INFLUENCED VISITORS,
[01:15:01]
UM, WHEN THEY SEE AN AD, IT'S PIXELED ON THEIR PHONE, AND THEN WE ARE REPORTING THAT THOSE PHONES COME INTO MARKET.UM, I THINK YOU BRING UP A GREAT POINT ON HOW WE'RE ESSENTIALLY GETTING THAT FEEDBACK.
WE DON'T ACTIVELY SURVEY VISITORS AT THE CITY.
UM, WE DO, WE'VE DONE THAT BEFORE WHEN WE STARTED THE TOURISM PROGRAM.
UM, I FEEL LIKE THERE COULD BE AN OPPORTUNITY TO WORK WITH THE HOTELS ON THAT, BUT THAT WOULD BE, YOU KNOW, VISITOR SURVEYS THAT WE ARE NOT CURRENTLY CONDUCTING.
BUT I THINK IT'S A GREAT IDEA.
AND I DON'T EVER LIKE TO OVERSELL THAT THEY SAW OUR AD AND BECAUSE OF THAT THEY CAME IN MARKET.
I JUST LIKE TO MAKE THE CORRELATION THAT YES, THEY SAW THE AD AND YES, THEY ENDED UP IN MARKET AND IN ORDER TO CALCULATE ANY TYPE OF RETURN ON INVESTMENT, THAT'S, THAT'S THE BEST WAY WE CAN DO IT NOW.
UM, BUT RECOGNIZING THAT THERE IS THAT CAVEAT.
SO IT'S ROAS BUT WITH A LITTLE ASTERISK.
I MEAN, I JUST, AND I DON'T KNOW IF WE WANNA WAIT FOR COMMENTS, BUT AS WE APPROVE THIS STUFF, I AGAIN, WANT TO LOOK AT AND BE, I THINK THESE NUMBERS ARE OPTIMISTIC.
UM, I'M NOT SAYING THERE'S A BETTER WAY TO CALCULATE IT, BUT I DON'T THINK WE'RE GETTING A 31 TO ONE RETURN IN REALITY.
SO I THINK WE NEED TO HAVE THAT IN MIND AS WE'RE LOOKING AT HOW MUCH MONEY WE WANNA SPEND ON THIS, PARTICULARLY WHEN WE HAVE RESIDENTS SAYING THEY DON'T WANT US TO SPEND MONEY ON THIS STUFF.
SO I GUESS MY ONLY FOLLOW UP COMMENT WOULD BE THAT WE KNOW THAT WE'RE SEEING LESS DEVICES COMING IN DUE TO PRIVACY CONCERNS.
SO THERE COULD BE AN ARGUMENT THAT THERE'S A LOT OF FOLKS THAT ARE SEEING OUR ADS THAT WE'RE NOT REPORTING ON BECAUSE WE'RE NOT ABLE TO TRACK THE DEVICE COMING IN.
SO YEAH, WE EVEN, WE WOULD CONSIDER THIS SOFT.
UM, WE, WE FIND THIS A BELIEVABLE, UM, NUMBER TO REPORT ON RATHER THAN OVER-REPORTING.
YOU KNOW, THERE ARE EXTRAPOLATIONS THAT WE COULD REPORT ON AND WE DON'T, UM, BECAUSE THIS IS A ONE-TO-ONE.
UM, YOU KNOW, THEY JUST, LIKE ANDREW SAID, THEY SAW IT, THEY CAME IN MARKET.
UM, I THINK JUST MAYBE ONE NOTE, YOU KNOW, THERE'S ANOTHER WAY TO LOOK AT, I THINK THE IMPACT OF CAMPAIGNS.
THE TERM IS CALLED INCREMENTAL LIFT.
ATTRIBUTION VENDOR THAT DVA WORKS WITH, I'M TRYING TO FIND THE WAY WAY TO DESCRIBE THAT DATA FY IS THE COMPANY THAT RUNS THESE REPORTS FOR US.
UM, INCREMENTAL LIFT IS BASICALLY WHEN YOU LOOK AT HOW DID AN EXPOSED AUDIENCE VERSUS A CONTROL AUDIENCE.
SO YOU BASICALLY LOOK AT OUR TARGET GEOGRAPHIES, OUR TARGET PERSONAS, OUR TARGET INCOME LEVELS.
THERE'S FOLKS THAT ARE SEEING THE ADS AND FOLKS THAT ARE NOT SEEING THE ADS.
UM, IF YOU LOOK AT THE INCREMENTAL LIFT FACTOR, UM, THOSE THAT SAW OUR ADS WERE 6.16 MORE LIKELY TO COME TO SEDONA THAN THOSE THAT DIDN'T SEE OUR ADS.
SO THERE'S ANOTHER WAY TO CALCULATE SOME OF THESE.
DO YOU KNOW WHAT THAT, WHAT THE ROAS WOULD BE BASED ON THAT THEN? CHRISTIAN, YOU WANNA TAKE THAT? YEAH.
UM, IT'S, I WOULD NEED TO DO SOME QUICK MAP.
I CAN DO THAT WHILE WE'RE, UM, RUNNING THROUGH THAT.
BUT YEAH, I WAS JUST GOING TO ADD THAT, UM, THAT THAT REALLY DOES ANSWER THE QUESTION WHETHER OR NOT PEOPLE SHOWED UP BECAUSE OF OUR ADVERTISING, THE WAY THOSE CONTROL AND TEST GROUPS ARE SET UP, UM, IT LOOKS AT ALL KINDS OF DYNAMICS AND WHETHER THERE, UM, IS INTENT TO VISIT PRE-IMPOSED A EXPOSURE.
SO THAT'S 100% WHY, UM, THEY'VE, WE STARTED LOOKING AT THAT INCREMENTAL, UM, ASSESSMENT TO TRULY ANSWER THAT QUESTION.
BUT IF YOU GIVE ME A FEW MOMENTS, UM, I CAN AND COME BACK, I'LL, I'LL DO WHAT I CAN TO SORT OF DO THAT MATH PRETTY QUICKLY.
DO YOU THINK THAT THAT NUMBER IS A MORE ACCURATE WAY TO DETERMINE WHAT WE'RE GETTING FOR IN OUR RETURN FOR AD SPEND? I MEAN, I, I DON'T THINK, YOU KNOW, YOU, YOU COULD CERTAINLY TAKE CREDIT FOR THE AD EXPOSURE, UM, OF, OF THE FOLKS THAT ARE REPORTED, UM, IF YOU WANT TO BE EVEN MORE CONSERVATIVE, UM, OBVIOUSLY THAT INCREMENTAL, UH, MEASUREMENT IS, YOU KNOW, THE MOST CONSERVATIVE, UH, ESTIMATE THAT WOULD EXIST.
I WOULD JUST SORT OF NOTE THAT AGAIN, ALL THE ATTRIBUTION DATA IS REALLY ONLY COMING THROUGH ONE CHANNEL.
UM, SO ANYTHING THAT COMES FROM, YOU KNOW, SEARCH ADVERTISING OR SOCIAL ADVERTISING IS COMPLETELY OUTSIDE OF THIS MEASUREMENT.
SO, YOU KNOW, WE REALLY ARE ITCHING RESULTS OF THE ENTIRE CAMPAIGN AND THAT THAT WOULD INCLUDE OUT HOME OR ANYTHING ELSE, YOU KNOW, NOT, NOT NECESSARILY IN THIS CASE, UM, TO REALLY THE ONLY
[01:20:01]
CHANNEL THAT ACTUALLY HAS THE CAPABILITY TO MEASURE THAT, UM, AD EXPOSURE AND, UH, DESTINATION VISITATION.AND I GUESS JUST TO SAY THAT BACK, I MEAN WE'RE, WE SPENT 170 SO THOUSAND DOLLARS OF THE TWO 50 ON ATTRIBUTION ADVERTISING, BUT WE'RE COMPARING THE WHOLE CAMPAIGN AGAINST THE $250,000.
SO OUR RESULTS WOULD DOUBLE IF WE JUST LOOKED AT THE ATTRIBUTION.
'CAUSE WE DO REPORT ON THE ENTIRE SPEND THAT WE DID.
AND I, I WOULD LIKE TO SEE BOTH NUMBERS NOW AND GOING FORWARD, JUST RECOGNIZING THAT THE ACTUAL FOR THE RENTAL LIFT YEAH.
SO RECOGNIZING I CAN JUST GIVE YOU A, A QUICK SENSE OF THE NUMBERS AND, AND THE DIFFERENCE AND I'LL, I'LL, WE CAN CERTAINLY GET INTO MORE, THE FINANCIAL WILL BE A LITTLE HARDER TO DO IN, IN THIS VERY MOMENT.
BUT, UM, LOOKING AT THE INCREMENTAL IMPACT, SO OUR, THE TOTAL NUMBER OF TRIPS TO THE DESTINATION WAS 4,630.
THAT'S THE TOTAL NUMBER OF TRIPS, NONE EXTRAPOLATED, UM, NOT THROUGH THE INCREMENTAL, UM, MEASUREMENT.
SO, UH, WHEN WE LOOK AT THE INCREMENTAL TRIPS, THAT NUMBER IS 3,877.
SO THE DIFFERENCE IS IS ABOUT 750.
SO THAT'S, TO ME IT'S, UM, I THINK, WHAT IS THAT ABOUT 15%? UM, SO I THINK THAT'S, YOU KNOW, YOU COULD SORT OF SAY THAT'S, YOU KNOW, THAT'S THE DIFFERENCE IS, IS IS THAT FIGURE RIGHT THERE.
'CAUSE EVERYTHING IS BASED ON, ON THOSE TRIPS, RIGHT? THOSE TRIPS, THE VISITOR DAYS, UM, AND THAT SAME, UM, RATIO APPLIED TO, UM, ROOM NIGHTS.
AND AGAIN, IF WE CAN DO THAT NOW, IT, IT JUST MIGHT TAKE ME MORE THAN, UH, WE HAVE ON THIS CALL TO GET THAT.
BUT WE CAN CERTAINLY DO THAT GOING FORWARD AND WE'RE HAPPY TO INCLUDE IT.
YEAH, I JUST, I WANNA SEE BOTH NUMBERS RECOGNIZING THAT THE TRUTH IS PROBABLY SOMEWHERE IN BETWEEN.
BUT IF THE RO, IF THE CONSERVATIVE RO HAS IS, YOU KNOW, TWO TO ONE, THE NOT CONSERVATIVE ROAS IS 31 TO ONE OR 32 TO ONE, WHATEVER.
SO NUMBER 32, UM, I JUST, I WANT TO KNOW WHAT KIND OF RANGE WE'RE REALLY TALKING ABOUT HERE.
MAYBE THEY'RE CLOSER TOGETHER THAN I THINK THEY'RE GONNA BE, BUT I THINK THERE'S PROBABLY GONNA BE A BIG DIFFERENCE BETWEEN THOSE TWO.
YOU, I, I GUESS MY POINT WOULD BE IF, IF THE DIFFERENCE BETWEEN THIRTY EIGHT HUNDRED AND FORTY SIX HUNDRED IS ABOUT 17%, UM, THAT, THAT WOULD BE, THAT WOULD BE YOUR RANGE AS 32, THE HIGH SIDE.
UM, AND THEN, YOU KNOW, 17% LESS THAN, UH, BEING THE LOW SIDE.
THAT IT, CHRISTIAN WILL CALCULATE THAT AND IF HE HAS IT TONIGHT, OTHERWISE, I'M HAPPY TO FOLLOW UP WITH YOU ON IT.
AND AGAIN, I THINK JUST, YOU KNOW, WE'VE BEEN ASKED, YOU KNOW, BECAUSE OF DEVICE CAPTURE, WOULD WE WANT TO USE AN EXTRAPOLATED METHOD? TO ME THAT WOULD BE THE MOST LIBERAL AND WE AREN'T EVEN SHOWING YOU THAT.
SO IF WE WANNA PUT THIS IN A PARADIGM, YOU KNOW, WE'RE NOT EVEN ADVOCATING FOR AN EXTRAPOLATED ROAS PRESENTATION, BUT I THINK IT'S GREAT THAT NOW, YOU KNOW, WE HAVE DIRECTION TO SHARE BOTH THE ROAS THAT WE GET FROM AD INFLUENCE VISITORS AND THEN ALSO FROM THE INCREMENTAL LIFT CA CALCULATION.
WELL, AND I'M JUST ONE, I DON'T KNOW IF THE OTHER COUNSELORS WANNA SEE THAT INFORMATION.
I'M ONE PERSON, SO, BUT I, I THINK THAT'S RELEVANT DATA.
BRIAN, DEREK, I ASKED ABOUT THE SAME, UH, DURING QUESTION, YOU KNOW, Q AND A AHEAD OF THE MEETING TODAY.
UH, AND I ACCEPT THE, THE REASONS FOR STICKING WITH WHAT REALLY IS A MORE CONSERVATIVE APPROACH.
UM, AND IF YOU GO AND YOU LOOK AT, YOU KNOW, WHAT ARE, UM, UH, HIGH PERFORMANCE BENCHMARKS FOR ROAS FOR, UH, TOURISM ADVERTISING, FOUR TO EIGHT X UH, ROAS IS CONSIDERED HIGH PERFORMANCE.
SO EVEN AS CONSERVATIVE AS YOU WANT TO GET ON THIS, THIS IS STILL OUTPERFORMING, UH, BENCHMARKS THAT WOULD BE CONSIDERED HIGH PERFORMANCE.
SO I, WE, WE DO SEE BOAZ LIKE IN THIS RANGE, AND I THINK ACROSS MULTIPLE DESTINATIONS.
UM, I, I CAN'T SPEAK TO ALL DATA SOURCES.
WE'VE USED SOURCES OUTSIDE OF DATA FIVE, UM, SOUR
UM, WE USED TO WORK WITH THEM.
[01:25:01]
CALCULATIONS, THEY WERE IN THE THOUSANDS TO ONE.SO, YOU KNOW, I WOULD LOVE TO, YEAH, WE'D LOVE TO CONTINUE TO PROVIDE WHAT WE FEEL LIKE IS BEST IN CLASS DATA TO SUPPORT, YOU KNOW, THE ADVERTISING IMPACTS AND, AND CONTINUED, YOU KNOW, I THINK THAT WAS PART OF THE ASK TOO FOR THE WINTER CAMPAIGN.
WERE THERE ANY OTHER VENDORS OUT THERE THAT HAVE BETTER SOLUTION? AND YOU KNOW, I THINK BETWEEN WHAT WE'VE SEEN REPORTED, YOU KNOW, FROM THE ROAS TO THE TOOLS AVAILABLE, UM, YOU KNOW, I I WOULD SAY THAT, YOU KNOW, WE'RE WELL WITHIN THE RANGE, UM, FOR WHAT WE SEE FOR WHAT DVA SEES, UM, ACROSS THE CLIENT ROSTER IN TERMS OF THAT ROAS.
BUT IF YOU CALCULATE, IF YOU CALCULATE ALL THOSE ROAS USING THE SAME METHOD THAT WE'RE USING HERE, HERE, AREN'T THEY THEN JUST ALL GONNA BE ARTIFICIALLY INFLATED? I, I MEAN, I GUESS IT REALLY JUST, YOU KNOW, COMES DOWN TO THE, SO THE INCREMENTAL IMPACT IS A RELATIVELY NEW TOOL.
UM, THIS IS THE FIRST TIME THAT WE'VE HAD IT.
SO I THINK IT'S SOMETHING THAT WE'VE STARTED REPORTING ON THIS PARTICULAR CAMPAIGN.
SO, YOU KNOW, I WOULDN'T SAY ARTIFICIALLY INFLATING IT, NO.
WE'RE REPORTING WHAT WE GET, UM, AND WHAT WE KNOW, YOU KNOW, THE, AGAIN, WE'RE ONLY GETTING AT BEST 12% DEVICE PICKUP.
RIGHT? AND SO, YOU KNOW, IS THAT, IS THAT REALLY REFLECTIVE OF EVERY PERSON THAT'S BEEN AT EXPOSED THAT SHOWS UP IN THE DESTINATION? PROBABLY NOT.
AGAIN, WE'RE NOT REPORTING ANYTHING RELATED TO ANY OF THE OTHER CHANNELS.
SO I I THINK IT'S A, YOU KNOW, YOU COULD CERTAINLY SAY IT, YOU FEELS HIGH, AND THAT'S, YOU KNOW, I MEAN THAT, THAT MAY BE, BUT BASED ON THE DATA THAT WE'RE GETTING, BASED ON THE INFORMATION WE HAVE, UM, AND HOW WE ARE, YOU KNOW, HOW THE TEAM THERE, UM, IS CHOOSING TO REPORT IT IS, YOU KNOW, CONSERVATIVE AND NON MODELED, WHICH IS ALWAYS, YOU KNOW, AGAIN FROM THE VERY FIRST UH, CAMPAIGN THAT WAS, THAT WAS A PRIORITY.
SO WE, AGAIN, I THINK THE, UM, THE IDEA THAT WE HAVE THIS INCREMENTAL, UM, IMPACT, AGAIN, IT'S, IT'S, UH, IT STILL PUTS THE ROAS SOMEWHERE IN, YOU KNOW, THE MID TWENTIES.
UH, IF YOU TAKE 17 PER 16.5% OFF THAT 32, UH, THAT'S ROUGHLY, YOU KNOW, 5.6 OR SOMETHING LIKE THAT.
SO IT DROPS IT BACK INTO THE MID TWENTIES.
SO I, YOU KNOW, UM, LET ME, LET ME STOP YOU THERE THOUGH.
IF THE INCREMENTAL LIFT IS 17%, YOU DON'T KNOCK THE 17% OFF THE TOTAL NUMBER.
YOU TAKE 17% OF THAT TOTAL NUMBER.
IT'S, IT'S THE DIFFERENCE BETWEEN, SO THE, THE, ON THE, THE, THE TOTAL DESTINATION TRIPS, UH, WITHOUT THE, YOU KNOW, NOT, NOT THE INCREMENTAL TRIPS WAS 4,600.
THE INCREMENTAL TRIPS MEASURED WAS 3,800.
SO THE DIFFERENCE BETWEEN THAT, THAT'S ABOUT 16.5%.
SO IF YOU TO TAKE 16.5% OFF OF 32, THAT'S WHERE I'M GETTING THAT MID TWENTIES FIGURE FOR ROAS.
BECAUSE ESSENTIALLY I'M JUST APPLYING, YOU KNOW, AGAIN, THIS IS ROUGH, BUT I'M APPLYING THE DIFFERENCE BETWEEN THE INCREMENTAL TRIPS AND THE TRIPS.
THE, THE TRIPS REPORTED AS ABOUT 16 TO 17%.
SO THAT, THAT GOES ALL THE WAY TO THE BOTTOM LINE.
IN THIS CASE, THE BOTTOM LINE WOULD BE RO HAS, UM, AND SO THAT DROPS IT TO, YOU KNOW, A MID TWENTIES FIGURE, UH, FROM THAT 32.
I DON'T HAVE ANY OTHER QUESTIONS.
I WOULD LIKE TO SEE THE NUMBERS, BUT THAT'S IT, CHARLOTTE, IT'S SORT OF A COMMENT AND SORT OF A QUESTION.
UM, I'M NEWER TO THIS AND I, I FREELY CONFESS THIS IS NOT AN AREA THAT I'M FAMILIAR WITH THE TERMINOLOGY, THE METHODOLOGY AND SO FORTH, BUT JUST IN THIS CONVERSATION, A NEW APPROACH OR A NEW WAY TO LOOK AT IT CAME UP THE INCREMENTAL, THIS INCREMENTAL ONE.
AND SO IT MAKES ME WONDER WHAT ELSE, WHAT OTHER WAYS, HOW DID YOU CHOOSE THE WAYS THAT YOU ARE CAPTURING THIS NOW? AND ARE THERE OTHER THINGS OUT THERE THAT WE, UH, MIGHT BE, I DON'T KNOW IF THEY'RE EASIER TO UNDERSTAND, BUT LOOK AT IN A SLIGHTLY DIFFERENT WAY.
NOTHING'S GONNA BE EASY TO UNDERSTAND.
SO I THINK ONE OF THE BIG QUESTIONS
[01:30:01]
THAT I THINK CITY COUNCIL'S ALWAYS HAD ABOUT TOURISM MARKETING IS, OKAY, YOUR TRADITIONAL METRICS LIKE CLICKS, IMPRESSIONS, THOSE LOOK GOOD, BUT HOW DO YOU KNOW IF THEY CAME TO SEDONA? RIGHT? SO THAT'S, THAT'S REALLY BEEN THE CORE OF WHAT, UM, WE'VE BEEN COMMITTED TO REPORTING TO COUNCIL IS SURE, WE'VE SPENT MARKETING DOLLARS, TRADITIONAL METRICS ARE GOOD AND WE KIND OF GO THROUGH THOSE TO SHARE THOSE WITH YOU.BUT THIS IS THE WAY TO REALLY REPORT ON WHETHER OR NOT FOLKS THAT SAW ADS CAME INTO SEDONA.
UM, AND AS WE SHARED LAST SUMMER, UM, THERE'S BEEN CHALLENGES WITH DEVICE CAPTURE TO DO THAT.
UM, WE DON'T EXTRAPOLATE UP, THERE'S A WAYS TO MODEL IT.
AS CHRISTIAN SAID, YOU KNOW, WE MIGHT BE GETTING 12% OF DEVICES THAT COME IN THAT ACTUALLY PING INTO THE REPORTING, BUT YOU KNOW, THERE'S A LOT OF FOLKS THAT LIKELY SAW ADS THAT WE'RE NOT ABLE TO REPORT ON.
'CAUSE WE'RE ONLY REPORTING ON WHEN WE SAW A PHONE THAT WE SERVE AN AD TO.
UM, WHEN WE DID OUR RESEARCH, UH, AFTER THE SUMMER TO SEE, HEY, YOU KNOW, IF DEVICE CAPTURE'S GOING DOWN AND LET'S JUST SAY THAT IT DISAPPEARED, THAT WAS A QUESTION THAT CAME UP DURING OUR KIND OF SUMMER, SUMMER CAMPAIGN RESULTS.
WE WERE COMMITTED TO, YOU KNOW, ESSENTIALLY DOING A REVIEW OF OTHER VENDORS THAT DID ATTRIBUTION TO SEE IF IT WAS OUR PROVIDER'S ISSUE OR IF IT WAS MORE OF A TREND THAT WAS JUST IN THE INDUSTRY.
UM, AND ALSO LOOK AT OTHER MODELS.
UM, WHAT WE FOUND WAS THAT DATA PHI, WHO WE WORKED WITH ON THIS WINTER CAMPAIGN, AND WE'LL BE PROPOSING TO WORK WITH ON THE SUMMER CAMPAIGN, STILL HAD THE BEST ATTRIBUTION PRODUCT ON THE MARKET FOR US.
UM, BUT WE DID LEARN ABOUT ANOTHER ONE.
UM, THAT'S NOT ATTRIBUTION BASED.
UH, WE ARE NOT RECOMMENDING IT AT THE MOMENT, BUT IF WE CONTINUE TO SEE ISSUES, WE, WE MIGHT, UM, AND THAT LOOKS AT CREDIT CARD SPEND IN MARKETS THAT WE SERVE ADVERTISING TO.
BUT THE CHALLENGE IS THAT IN THAT OPTION, WE DON'T KNOW IF THE PEOPLE WE SERVED AD ADS TO ARE THE ONES THAT SPENT THE DOLLARS.
SO, UM, IT'S SORT OF A PLAN C PLUS, IF YOU WILL.
UM, BUT IN ORDER TO GET TO THE ANSWER OF DID PEOPLE THAT SAW YOUR ADS COME INTO SEDONA, THIS IS THE BEST AVENUE THAT WE HAVE AVAILABLE TO US.
YEAH, I JUST REMEMBER, UM, IT'S A LOGICAL FALLACY TO ASSUME THAT BECAUSE SOMETHING COMES AFTERWARDS, IT'S BECAUSE OF, AND IT IS HARD, IT IS HARD TO UNDERSTAND THE ATTRIBUTION.
SO, UM, I I WHAT'S WHAT'S HARD ASK YOUR LOOKING FOR SIMPLE, SIMPLER APPROACHES IF THEY EXIST.
I'M, I'M JUST CURIOUS WHAT'S, WHAT'S SIMPLER THAN THEY SAW THE AD AND WE TRACKED THAT THEY SAW THE AD AND THEY ENDED UP IN MARKET.
IS IT THAT WE DON'T HAVE PROOF THAT THE AD THAT WE A, WE DIDN'T ASK THEM IN A SURVEY TO SAY, DID THAT AD MAKE YOU COME HERE? IS THAT, WOULD THAT CLOSE THE LOOP FOR YOU? YEAH, THAT WOULD CLOSE THE LOOP, YEAH.
AND I DON'T KNOW IF FROM A RESOURCE STANDPOINT WE'LL EVER BE ABLE TO DO THAT.
SO I WOULD ASK, COUNSEL IS GOOD.
SO I UNDERSTAND THAT'S A PROXY FOR IT IS GOOD, IS GOOD, GOOD ENOUGH RATHER THAN GREAT.
THIS IS WAY BETTER THAN WHAT USED TO BE POSSIBLE.
LIKE SERIOUSLY, LIKE THESE GUYS ARE COOKING WITH GAS ON THIS, THIS IS AS GOOD AS IT GETS.
SO MAYOR MELISSA, SO FIRST OF ALL, ON THAT PARTICULAR TOPIC, IT'S, IT'S A VERY COMPLICATED BECAUSE THEY COULD HAVE SEEN AN AD FROM THE LAST CAMPAIGN AND THEN SAW ANOTHER AD FROM THIS CAMPAIGN, WHICH REINFORCED THE IDEA THAT THEY MIGHT WANNA GO TO SEDONA.
AND SO WHICH ONE OF THOSE ADS AND WHICH OF THOSE CAMPAIGNS DO YOU ATTRIBUTE THIS TO? AND SO YOU ATTRIBUTE IT TO THE ONE THAT'S CLOSEST TO WHEN THEY SHOW UP.
AND SO THAT'S ALSO PART OF THE PROBLEM, RIGHT? I MEAN, THAT'S JUST HUMAN NATURE REINFORCEMENT OF SEEING ADS AND YOU MIGHT SEE THEM OVER TIME AS OPPOSED TO WITHIN THE SAME CAMPAIGN.
SO I THINK GOOD IS GOOD ALWAYS HAS TO BE GOOD ENOUGH IN THIS CASE BECAUSE WE'RE NOT IN EVERYBODY'S HEAD WHO SEES AN AD OR FOLLOW THROUGH WHERE THEY'RE GONNA GO.
SO, UM, I THINK THIS IS, THIS HAS BEEN A HARD PROBLEM, UM, AD ATTRIBUTION FOR EVERY COMPANY I HAVE EVER BEEN IN, FROM MICROSOFT TO HERE.
SO, UM, AND IT, TO THE VICE MAYOR'S POINT, IT'S GOTTEN SO MUCH BETTER.
UM, AND SO MUCH MORE ACCURATE.
AND WE DID JUST LOSE OR ARE LOSING A REALLY GREAT TOOL, WHICH WAS FOLLOWING YOUR PHONE, UM, WHICH OF COURSE IS NOW PII AND PRIVACY AND ALL THAT OTHER STUFF.
I ALSO HAD A, BUT I HAD A DIFFERENT QUESTION.
SO I JUST HEARD THE DESTINATION TOTAL TRIPS NUMBER IS DIFFERENT THAN WHAT'S IN OUR DECK.
IS, IS WHICH NUMBER'S CORRECT? IT'S, IT'S SO BECAUSE WE SEND YOU YOUR DECK AT A CERTAIN TIME, I MEAN, SOMETIMES
[01:35:01]
THE NUMBERS WILL SLIGHTLY CHANGE BETWEEN, I MEAN, IT'S 39 DIFFERENT BETWEEN WHAT, WHAT I BELIEVE YOU SAID, BUT THE ATTRIBUTION, THE RETURN ON AD SPEND ATTRIBUTION IS BASED ON THIS NUMBER.'CAUSE THAT WOULD CHANGE THE NUMBERS.
SO FOR WHAT WE'RE REPORTING, THIS IS, THESE ARE THE NUMBERS TO WORK WITH.
I THINK CHRISTIAN JUST PULLED UP THE DASHBOARD THAT HE SAW TODAY.
IN THE PREVIOUS SLIDE, WE TALK ABOUT THE RETURN TO THE CITY.
IS THERE ANY WAY TO MEASURE THE RETURN TO THE BUSINESSES AT AN INDIVIDUAL BUSINESS LEVEL OR JUST NO? OH, YEAH.
YEAH, I'M ABOUT TO GET HALFWAY THERE AND THEN, OKAY.
I THINK I'M GONNA ANSWER YOUR QUESTION, BUT IF YOU NEED MORE, I WOULD LOVE FOR YOU TO CLARIFY THAT QUESTION AGAIN, PLEASE.
SO, UM, AGAIN, OUR TOTAL WAS THAT, YOU KNOW, 5.2 MILLION ECONOMIC IMPACT.
UM, WHAT WE GET HERE IS ON THE LEFT SIDE, THAT IS TOTAL TRIPS TO THE DESTINATION, WHICH 4,561.
BUT WE SAW AN AVERAGE TRIP LENGTH OF 2.4 DAYS, WHICH ENDED UP BEING A TOTAL OF 10,843 VISITOR DAYS.
UM, WE DID A STUDY WITH RRC ASSOCIATES, WHICH WAS A VISITOR, UM, VISITOR STUDY THAT WE DID, UH, BEFORE MY TIME HERE.
BUT IN THAT STUDY, WE ASKED THEM A QUESTION OF BASICALLY, YOU KNOW, HOW MUCH ARE YOU SPENDING PER DAY IN SEDONA ON MEALS, ACTIVITIES, EXPERIENCES, TRANSPORTATION, BUT NOT LODGING.
UM, AND THAT NUMBER IS $190 PER DAY IN SPEND.
UM, I KNOW THAT FROM A COUPLE YEARS AGO, I'LL JUST SHARE THAT, YOU KNOW, WE'VE LOOKED AT SOME OTHER MODELS AND THERE, THEY'RE, THEY'RE, ANYTHING I'VE SEEN IS ABOUT $10 HIGHER, BUT WE'RE GONNA STICK WITH THE ONE 90 'CAUSE THAT'S WHAT WE'VE BEEN DOING, AND THAT'S FROM THE STUDY THAT WE FEEL BEST ABOUT.
UM, BUT I STILL THINK THAT NUMBER'S ACCURATE IS WHAT I'M SAYING.
UM, AND THEN A FEW TIMES THAT BY THE VISITOR DAYS, THAT GETS US TO, YOU KNOW, JUST OVER $2 MILLION IN S IN DESTINATION IMPACT.
NOW, MAYOR, THAT WOULD BE THE BUSINESS REVENUE AT EVERYTHING.
THAT'S TOURISM RELATED SANDS LODGING.
UM, AND THEN WHEN IT COMES TO HOTELS, AGAIN, WE'VE GEOFENCED THE ENTIRE CITY OF SEDONA.
THAT'S HOW WE KNOW IF THEY COME INTO THE CITY, WE'VE ALSO GEOFENCED ALL OF OUR HOTELS.
UM, AND WE CAN TELL IF THEY SPEND THE NIGHT THERE.
UM, AT THAT POINT WE GENERATED JUST SHY OF 6,500 ROOM NIGHTS AT HOTELS WITHIN CITY LIMITS.
UM, AND WE LOOKED AT THE AVERAGE DAILY RATE FROM SMITH TRAVEL RESEARCH FOR THE SEDONA PLUS STUDY AREA, WHICH IS THE BEST WE HAVE.
AND IF YOU LOOK AT, YOU KNOW, JUST SHY OF 600 6500 ROOM NIGHTS WITH THAT A DR, THEN YOU'RE LOOKING AT THAT, YOU KNOW, $2.38 MILLION IN ECONOMIC IMPACT FOR THE HOTELS WITHIN CITY LIMITS.
UM, AND THEN WE ALSO, IF YOU REMEMBER, STARTED TO GEOFENCE THE SHORT TERM RENTALS IN PARTNERSHIP WITH THE DATA THAT THERESA HAS FOR LICENSES FOR THE PERMITS.
UM, AND WE'RE ABLE TO SEE THAT.
WE SAW, UH, 2000 ROOM NIGHTS, JUST SHY OF 2000 ROOM NIGHTS AT THE SHORT TERM RENTALS.
UH, WE WORKED WITH CHRISTIAN ON A BLENDED AVERAGE DAILY RATE BETWEEN VRBO AND AIRBNB THROUGH OUR VENDOR KEY DATA.
UM, WE DON'T KNOW WHICH, WHICH PLATFORM THEY'RE BEING SOLD ON.
SO WE DID OUR BEST TO GET A BLENDED A DR, AND IF THAT JUST SHY OF 2000 ROOM NIGHTS WITH THE A DR THAT'S LISTED GETS US TO THAT, YOU KNOW, $850,000 FIGURE.
UM, SO THOSE ARE THE THREE WAYS THAT WE'RE ADDING UP TO THAT $5.2 MILLION.
SO IF YOU, WHEN YOU LOOK AT THE FIRST COLUMN, IT'S THE DESTINATION IMPACT.
SO IT'S, IT'S SPEND MINUS LODGE, RIGHT? YES.
AND THEN YOU LOOK AT THE HOTELS AND THE SHORT TERM RISK AND YOU ADD THEM ALL UP.
AND THAT'S THE TRUE IMPACT TO THE COMMUNITY, A ONE-TO-ONE, UM, USING AN AVERAGE A DR AND AN APP.
UM, AND THEN JUST TO CLARIFY, YOU KNOW, ALL OF THE TRIPS IN HOTELS AND SHORT-TERM RENTALS, THOSE ARE ACCOUNTED FOR IN THE DESTINATION TRIPS BECAUSE IT'S, WE SAW THOSE FOLKS COME INTO THE DESTINATION AND THEN THEY STAYED ESSENTIALLY OVERNIGHT AT ONE OF THOSE PROPERTIES.
UM, CHARLOTTE, YOU ASKED ME THAT QUESTION A COUPLE DAYS AGO, AND CAN YOU EXPLICITLY SAY WHAT, WHAT GOES INTO EQUALING THAT DESTINATION NUMBER? UM, THAT DESTINATION NUMBER ON THE LEFT IS WHETHER OR NOT WE SAW THOSE DEVICES COME INTO THE GEOFENCE OF THE CITY LIMITS.
AND SO IT INCLUDES PEOPLE THAT STAYED AT HOTELS, PEOPLE THAT STAYED AT SHORT-TERM RENTALS AND DAY TROOPERS.
AND THAT'S WHAT I WAS SURMISING, BUT OKAY, THANKS.
YEAH, IT ALSO INCLUDES PEOPLE THAT STAY AT TIMESHARES.
WE JUST CAN'T REALLY REPORT ON THE ECONOMIC IMPACT OF THAT BECAUSE THOSE ARE OFTEN KIND OF OWNER OCCUPIED.
[01:40:01]
BY SIDE COMPARISON BETWEEN THE WINTER 24 25 CAMPAIGN AND THE WINTER 25 26 CAMPAIGN.SO OUR ECONOMIC IMPACT WAS HIGHER IN THIS PAST WINTER COMPARED TO THE PREVIOUS WINTER, BUT WE ALSO SPENT MORE, UM, WHICH IS WHY THE RETURN ON AD SPEND WAS HIGHER IN 24, 25 COMPARED TO 25, 26.
BUT AGAIN, THOSE DIFFERENCES ARE MOST LIKELY CONTRIBUTED TO THE DROP IN DEVICE CAPTURE THAT WE HAVE WITH THE ATTRIBUTION STRATEGY.
UM, YOU KNOW, THAT POINTS TO US, YOU KNOW, HAVING LESS VISITOR DAYS THAT WE CAPTURED.
BUT I AM HAPPY TO SAY THAT OUR LENGTH OF STAY WENT UP QUITE A BIT BETWEEN LAST CAMPAIGN TO THIS CAMPAIGN, UH, WENT FROM 1.7 TO 2.4.
UM, I THINK IF YOU KIND OF LOOK AT THIS, YOU SEE THAT THE FOLKS THAT WE DID GET AD INFLUENCED VISITORS STAYED OVERNIGHT MORE THIS CAMPAIGN THAN THE PREVIOUS CAMPAIGN, WHICH IS GREAT.
UM, OUR HOTEL TRIPS, UH, SLIGHTLY DOWN ROOM NIGHTS WERE UP THOUGH, WHICH AGAIN SHOWS YOU THAT, UM, LENGTH OF STAY INCREASED.
WE ALSO HAD A HIGHER A DR THIS CAMPAIGN THAN PREVIOUS CAMPAIGN.
UM, AND THEN WE WEREN'T TRACKING SHORT-TERM RENTAL TRIPS THE PREVIOUS CAMPAIGN, BUT WE STARTED TRACKING THEM HERE.
I WILL JUST SAY THAT, YOU KNOW, WHEN I, WHEN I LOOK AT AT LEAST THE OVERNIGHT STAYS, I AM VERY HAPPY AND PROUD THAT OUR CAMPAIGNS ARE DRIVING HOTEL VISITATION.
UM, PRIMARILY WE DO SEE SHORT-TERM RENTAL VISITATION, BUT MORE OFTEN THAN NOT, OUR AD INFLUENCE VISITORS ARE STAYING AT OUR HOTELS.
HERE'S A BREAKDOWN OF OUR MARKETS.
UM, THE TOP ONES ARE OUR DRIVE MARKETS, THE BOTTOM ONES ARE FLIGHT MARKETS.
UM, I THINK, YOU KNOW, THE BIG ONE HERE FOR US THIS PAST WINTER WAS THAT EVERY SINGLE MARKET HAD MORE THAN A 10 TO ONE RETURN ON INVESTMENT.
UM, AND THEN IF YOU, IF YOU LOOK AT OUR FLIGHT MARKETS IN PARTICULAR, UM, LAST WINTER THEY AVERAGED A RETURN ON INVESTMENT OF 3.81, AND THIS WINTER THEY RETURNED AN INVESTMENT OF 15.5.
UM, SO REALLY PLEASED WITH WHAT WE SAW AS A, YOU KNOW, A NICE GROWTH IN OUR WINTER MARKETS.
AGAIN, I'LL POINT TO, YOU KNOW, DENVER, MINNEAPOLIS, CHICAGO, UM, YOU KNOW, IT WAS COLD UP THERE, ESPECIALLY MINNEAPOLIS, AND IT'S NICE TO SEE THAT SEDONA, I KIND OF THINK OF US SOMETIMES AS LIKE AN ANTI WINTER DESTINATION.
YOU KNOW, IT'S LIKE, DO YOU WANT TO, DO YOU WANNA PLAY GOLF? DO YOU WANNA GO HIKING IN YOUR SHORTS? DO YOU WANNA GET OUT OF, YOU KNOW, WALKING UNDERGROUND IN MINNEAPOLIS? SO, UM, IT IS NICE TO KNOW THAT, YOU KNOW, HOPEFULLY THAT MESSAGE IS RESONATING AND WE SEE IT, UM, A BIT IN OUR RETURN.
UM, AND THEN ALSO, YOU KNOW, ARIZONA CONTINUES TO BE OUR HIGHEST RETURNING INVESTMENT.
UM, YOU KNOW, PHOENIX AND TUCSON ARE, ARE ALWAYS UP THERE AT THE TOP.
AND THEN SAN DIEGO AND LA ARE ALWAYS STRONG PERFORMERS FOR US AS WELL.
UM, WE DID PILOT THE HIGH NET WORTH INDIVIDUAL AUDIENCE, UH, THIS, THIS WINTER.
UM, I WAS HAPPY THAT WE DECIDED TO PILOT IT STARTING IN A WINTER CAMPAIGN.
WE KNOW THAT THAT'S WHEN A LOT OF PEOPLE START TO KIND OF MAKE THOSE ANNUAL TRAVEL PLANNING CYCLES, ESPECIALLY IN THE HIGH NET WORTH AUDIENCE.
SO HAPPY TO GET IN FRONT OF THEM WHEN WE DID THIS PAST WINTER.
UM, WHAT YOU'RE SEEING IN THIS SLIDE ARE TWO ROWS.
THE TOP ROW IS THE ATTRIBUTION THROUGH 2 28, WHICH IS COMPARATIVE TO EVERYTHING ELSE YOU'VE SEEN.
BUT, UM, ONE THING WE'VE ALWAYS THOUGHT ABOUT IS THESE FOLKS HAVE A LONGER PLANNING WINDOW.
UM, YOU KNOW, WITH THE DECISION PACKAGE THAT I'LL BE SHARING TOMORROW, THERE IS A CONVERSATION AROUND KEEPING A KIND OF FLIGHT MARKET IN PLACE HERE ROUND.
UM, THAT'S KIND OF REFLECTED HERE, WHERE IF WE TOOK THE ATTRIBUTION THROUGH 3 21, UH, WE START TO SEE IT GROW, UM, FROM 8.74 TO 10.97, BUT ALSO LENGTH OF STAY INCREASING.
SO WE CAN EXPECT IF WE WERE TO KEEP THIS ATTRIBUTION ON, WE'D CONTINUE TO SEE THE ROI INCREASE.
UM, AND WE ARE ABLE TO DO THAT THROUGH THE NEXT 12 MONTHS.
AND WE'RE JUST GONNA DO THAT TO CONTINUE THE TEST AND PILOT TO HELP YOU UNDERSTAND WHAT THE VALUE OF THIS IS.
UM, WHAT YOU SEE ON THE BOTTOM RIGHT IS FOR THE ENTIRE CAMPAIGN, THE INCOME DEMOGRAPHICS THAT WE SEE FROM THE VISITORS THAT WERE AD INFLUENCE THAT WE CAPTURED THEIR DEVICES FOR, THAT WE SAW THEIR DEVICE IN MARKET FOR, UM, COMPARED TO THE PREVIOUS WINNER TO THIS WINNER, WE SAW A 5% INCREASE IN THE 150 K AND ABOVE INCOME BRACKET.
UM, IT'S NOW THE LARGEST INCOME BRACKET IN OUR DEMOGRAPHICS.
SO, UM, WE'RE STILL SIFTING THROUGH, UM, THE DATA AND WANT TO CONTINUE TO EXTEND THE ATTRIBUTION TO, YOU KNOW, FURTHER UNDERSTAND THIS AUDIENCE.
UM, I THINK ONE THING LAUREN WILL SHARE IS THAT WE'RE GONNA BE DOING SOME SPECIFIC, WELL, WE'RE PROPOSING TO DO SPECIFIC ADVERTISING FOR THE HIGH NET WORTH INDIVIDUAL AUDIENCE, ONE GROWTH OPPORTUNITIES THAT THEY SAW THE SAME ADS AS EVERYBODY ELSE IN THE CAMPAIGN, AND WE'RE STARTING TO GET MORE SOPHISTICATED AND CREATE
[01:45:01]
AD GROUPS FOR SPECIFIC AD AUDIENCES.UM, BUT WANTED TO SHARE WITH YOU SOME INITIAL RESULTS FROM THE PILOT THAT YOU APPROVED US TO CONDUCT.
ANDREW, DO YOU HAVE ANY ANECDOTAL, UH, COMMENTS THAT YOU WANNA SHARE ABOUT TALKING TO RETAILERS AND OTHER AND WHETHER OR NOT SO RETAILERS TO SEE IF THEY HAD AN INCREASE? AND ALSO I THINK WE TALKED YESTERDAY ABOUT BEING ABLE TO BREAK DOWN WHERE PEOPLE ARE STAYING.
SO ARE IS THE HIGHER NET WORTH INDIVIDUALS STAYING AT THE HIGHER, UH, PRICED HOTELS IN TOWN? SO I, I WOULD SAY THAT IN CONVERSATIONS WITH, WITH OUR, OUR RETAIL BUSINESSES THAT I'VE TALKED TO, I THINK THEY'RE STILL IN NEED OF KIND OF SUPPORT AND ASSISTANCE.
I THINK THEY'RE CONTINUING TO STRUGGLE AT TIMES.
SO I WOULD JUST CONTINUE TO PUT THAT AS A PRIORITY IS HOW, HOW ARE WE HELPING HELPING RETAIL? UM, I THINK THAT'S SOMETHING THAT WE, WE THINK A LOT ABOUT IN THE TOURISM PROGRAM.
UM, YOU KNOW, WE ARE STARTING TO SIFT THROUGH THE DATA ON WHERE FOLKS ARE STAYING AND UNDERSTANDING IF THERE'S TRULY DIFFERENCES.
SO, UM, AS WE CAN HOPE TO CONTINUE TO LOOK AT THIS AD GROUP, I THINK THAT'LL BECOME, HOPEFULLY BECOME PART OF THE REPORTING THAT WE SHARE WITH YOU.
UM, I THINK ONE OF THE, ONE OF THE PARTS OF THE THEORY THAT WAS IN PLACE WHEN WE SET THIS AD GROUP UP, AND AGAIN WE HOPE TO GET THIS MORE SOPHISTICATED AS WE GO, IS THAT, YOU KNOW, THAT 190 PER DAY NUMBER OR THAT A DR NUMBER, UM, IS AN AVERAGE ACROSS THE DESTINATION.
UM, IF WE TRULY ARE TARGETING THE HIGH NET WORTH INDIVIDUAL, ONE WOULD ASSUME THAT THEIR AVERAGE DAILY SPEND AND AVERAGE DAILY RATE WOULD BE HIGHER.
SO, UM, THAT'S ONE THING WE'RE LOOKING INTO AND HOW DO WE FACTOR THAT INTO THE WAY THAT WE REPORT.
I MEAN, IN MY CONVERSATIONS WITH BUSINESS OWNERS, IT REALLY VARIED ACROSS THE BUSINESSES AND THE LOCATION OF THE BUSINESSES WHERE I WAS TOLD THAT THEY WERE SEEING A, CERTAIN BUSINESSES WERE SEEING A TREMENDOUS UPLIFT AND OTHERS SAW NOTHING.
SO THIS IS A QUESTION THAT MAY BE, YOU CAN'T ANSWER AT THIS POINT IN TIME, BUT, UM, 150,000 DOESN'T FEEL SUPER HIGH, UM, THIS DAY AND AGE.
SO CAN YOU STRATIFY THOSE NUMBERS WITH THE DATA THAT YOU HAVE TO KNOW, REFINE, LIKE WHERE ARE THOSE PEOPLE REALLY COMING IN? WHAT, WHAT INCOME LEVEL ARE THEY, YOU KNOW, TRULY AT, UM, TO TRY AND FIGURE OUT WHETHER OR NOT WE'RE, WE'RE STILL TARGETING THE RIGHT SET OF PEOPLE THIS WAY.
I DON'T KNOW IF ANY, IF THAT MAKES SENSE.
NO, NO, IT MAKES PERFECT SENSE AND IT'S SOMETHING THAT I'VE BEEN LOOKING INTO FOR A WHILE.
UM, THE WAY THAT THIS GETS PRESENTED IS BASED ON THE CENSUS AND THE CENSUS CAPS AT ONE 50.
SO UNTIL THE CENSUS CHANGES ITS INCOME BRACKETS, MY UNDERSTANDING IS THAT WE'RE NOT GONNA BE ABLE TO REPORT THIS IS THE ONE 50 IS THE FLOOR.
IT CAN GO UP TO, AND I GUESS TRILLION IF YOU'RE ELON MUSK UP THERE ESSENTIALLY.
BUT, UM, THAT IS REALLY THE FLOOR OF WHAT THAT BRACKET IS.
BUT THAT DOES NOT MEAN THAT EVERYTHING IS AT ONE 50.
THAT'S JUST AS WAY THAT WE GET THE DATA FROM THE CENSUS AND THE OTHER SURVEYS THAT ARE THERE.
SO THIS IS A CENSUS LIMITATION FOR US.
UM, I'VE BEEN PUSHING OUR RESEARCH VENDORS FOR THE LAST SIX MONTHS SINCE WE STARTED HAVING THIS CONVERSATION AROUND HIGH NET WORTH AND THEY'RE BASICALLY TELLING ME THAT UNTIL THE NATIONAL REPORTING CHANGES, WE WON'T BE ABLE TO EXTEND THAT DOWN.
BUT WHAT YOU BROUGHT UP AND THIS CHALLENGE WITH THE CENSUS CAPPING IT AT A CERTAIN LEVEL IS WHY DVA AND CHRISTIAN TOOK US DOWN THE PATH OF THAT REV, I CALL IT REVERSE RETARGETING.
DID YOU STAY AT A REALLY EXPENSIVE HOTEL SOMEWHERE? WELL, ONE CAN ASSUME YOU PROBABLY ARE A HIGHER NET WORTH INDIVIDUAL.
'CAUSE WE COULDN'T DO IT BY SAYING, LET'S DRAW A LINE AT 500 K.
YOU KNOW, THAT'S, THAT'S NOT POSSIBLE WITH THE WAY THAT THIS ALL WORKS.
UM, BUT IT IS AN, IT IS AN INTERESTING THING AS WE MOVE FORWARD, WHICH IS, YOU KNOW, THIS IS LOOKING AT, THIS IS LOOKING AT INCOME LEVELS.
NOW THERE IS A LOT OF HIGH NET WORTH INDIVIDUALS THAT DON'T GENERATE AN INCOME AS WELL, WHICH IS ANOTHER REASON WHY I THINK IT'S INTERESTING THAT WE'RE TAKING THE APPROACH THAT WE'RE TAKING WITH DVA TO DO THIS REVERSE RETARGETING BECAUSE IT'S NOT BASED ON WHAT YOU REPORT AS INCOME IT BASED ON WHAT WE SEE AS YOUR SPENDING AND TRAVEL PATTERN
DO WE HAVE AN UNDERSTANDING OR CONVERSATIONS WITH THE MORE EXPENSIVE HOTELS HERE TO UNDERSTAND HOW THEY MARKET? YEP.
UM, I'M ACTUALLY GONNA BE, UM, HAVING LUNCH WITH, UM,
[01:50:01]
AMBIENTE AND A BUNCH OF CANADIAN TRAVEL AGENTS ON THURSDAY AS PART OF A FAMILIARIZATION TOUR.SO WE WORK REALLY CLOSELY AND I'M GONNA BE AT LEBERTS AS WELL THIS WEEK.
SO WE WE'RE, WE'RE CLOSE PARTNERS WITH THEM, UM, AND I'M CONTINUING TO TRY TO FIND BETTER WAYS TO ALIGN WITH THEM.
UM, SO JUST SOME TAKEAWAYS, UH, BEFORE I HAND THINGS OVER TO LAUREN.
UM, SO REALLY, YOU KNOW, WHAT WE CONTINUE TO SEE IS THAT THE REDEFINED DESERT CAMPAIGN HAS RESONATED THROUGH ITS THIRD EXECUTION.
UM, DENVER REMAINS A REALLY STRONG WINNER MARKET FOR US.
UM, LENGTH OF STAY INCREASE COMPARED TO THE PREVIOUS WINNER.
WE WENT FROM DESTINATION VISITS WENT FROM 1.7 TO 2.4 AND HOTEL STAYS GREW FROM 1.9 TO 2.8.
UM, AND THEN AS WE KIND OF ENDED WITH, YOU KNOW, THE INITIAL TEST OF THE HIGH NET WORTH INDIVIDUAL GENERATED AN ROI, UM, BUT I THINK THAT THERE'S OPPORTUNITIES WE IDENTIFIED TO MAKE THAT STRATEGY MORE SOPHISTICATED THAT LAUREN WILL TOUCH ON AS WE TALKED ABOUT THE SUMMER CAMPAIGN.
AND THEN WE ALREADY TALKED ABOUT SOME OF THE MORE SOPHISTICATED WAYS WE'RE LOOKING TO REPORT ON THAT.
ANY QUESTIONS BEFORE I HAND IT OFF TO LAUREN? WELL, THANK YOU.
SO AS ANDREW MENTIONED, I'M HERE TO TALK ABOUT THE SUMMER 2026 CAMPAIGN STRATEGY.
SO I WILL GET INTO THIS MORE IN A FEW SLIDES.
YOU'LL SEE THAT I PUT A RED NUMBER UP THERE.
UM, 151,900 IS AVAILABLE FOR THE SUMMER CAMPAIGN.
I'LL GET INTO THOSE DETAILS, UM, LIKE I SAID IN A FEW SLIDES.
SO JUST PUT A PIN IN THAT FOR A SECOND.
UM, SOME SETTING, THE STAGE THAT WE'D LIKE TO GO OVER IS JUST WHAT WE'RE DEALING WITH THIS SUMMER, UM, WHICH HAS BEEN DIFFERENT THAN IN PAST CAMPAIGNS.
FIRST IS THAT WE'RE IN MIDTERM ELECTIONS AND ADVERTI ADVERTISING COSTS ARE GOING UP BY 20%, UM, UH, WITH THE POLITICAL SPENDS.
THE SECOND IS THAT THE WORLD CUP IS COMING TO THE UNITED STATES THIS YEAR.
MANY OF YOU ARE SOCCER FANS, UM, WHICH IS NOT ONLY MAKING IT VERY EXPENSIVE TO FLY IN AND OUT OF HOST CITIES, BUT ALSO MAKING ADVERTISING COSTS EXTREMELY HIGH IN THOSE CITIES AS WELL.
ALL OF OUR USUAL SUMMER FLIGHT MARKETS ARE HOST CITIES WITH THE EXCEPTION OF CHICAGO, AND THAT IS A MAJOR INTERNATIONAL FLIGHT HUB LEADING US TO THE SAME CONCERNS OF IN INCREASED FLIGHT PRICES IN AND OUT OF THAT CITY.
THIRD IS KNOWING THAT TRAVEL WILL BE EXPENSIVE THIS SUMMER AND THAT LUXURY TRAVEL CATEGORY IS STILL PERFORMING, PERFORMING WELL WITH HIGH NET WORTH INDIVIDUALS DOING THE MAJORITY OF TRAVEL THIS TIME AROUND.
UM, AND SO AS YOU'LL SEE IN THE UPCOMING SLIDES, WE HAVE A DEDICATED HIGH NET WORTH STRATEGY TO CAPTURE THIS AUDIENCE SO THAT YOU HAVE LAST SUMMER'S NUMBERS FRESH IN YOUR BRAIN.
IN 2025, WE RAN A CAMPAIGN CAMPAIGN FROM MAY 15TH TO AUGUST 31ST.
THE TOTAL SPEND WAS INITIALLY 163,000, BUT THAT WAS INCREASED TO 213,000 IN JULY DUE TO POOR BUSINESS PERFORMANCE.
YOU CAN SEE THAT ADVERTISING STRATEGIES INCLUDED OUR USUALS, WHICH WAS PAID SEARCH FOR 15,000 META ADS OUT OF MARKET AND IN MARKET 47 5.
UM, ATTRIBUTION BASED ADS, SO THAT'S THE WEB-BASED ADS THAT WE HAVE AND THE TV ADS THAT RUN, THAT'S 136,000.
AND THEN, UM, 15,000 FOR THE, UM, DIGITAL BANNER THAT WAS ADDED AT THE PHOENIX AIRPORT.
OVERALL, THE CAMPAIGN DID WELL.
UM, WE HAD GREAT WEB TRAFFIC AND OUR TOP CITIES THAT CAME TO THE WEBSITE MATCHED OUR ADVERTISING STRATEGY.
WE HAD A TOTAL ROAS OF 12 TO ONE, WHICH WAS STILL GOOD, BUT LOWER THAN WHAT WE'D SEEN IN THE PAST, AND WE ATTRIBUTED THAT TO LESS DEVICE CAPTURE WITH DATA PRIVACY LAWS.
HERE ARE TOP MARKETS FROM OUR SUMMER 2024, OUR SUMMER 2025.
UM, THIS IS BASED ON, UM, ROI AND THEN YOU CAN SEE ON THE RIGHT THERE, THAT'S IF YOU ADD THOSE TOGETHER AND DIVIDE BY TWO, YOU CAN SEE, UM, HOW THOSE ARE RANKING.
OKAY, SO THE KEY FINDINGS FROM THE SUMMER 2025 CAMPAIGN INCLUDED THAT PHOENIX AND TUCSON ARE CLEAR, ROI WINNERS.
THEY ALSO REPRESENT THE LARGEST SHARE OF HOTEL AND SHORT-TERM RENTAL STAYS.
UM, LA IS THE STRONGEST OUT OF STATE MARKET AND THE DRIVE MARKETS REMAIN THE TOP FIVE MARKETS FOR BOTH ROI AND VISITOR VOLUME INDICATING STRONG RELIABILITY IN THESE MARKETS.
[01:55:01]
LEAD TO WHAT WE ARE PITCHING FOR THIS SUMMER.SO THIS IS A STAGGERED CAMPAIGN WITH THE FLIGHT MARKET ADS RUNNING MARCH 15TH TO AUGUST 1ST AND THE DRIVE MARKET ADS A LITTLE BIT LATER FROM MAY 15TH TO AUGUST 31ST.
SO THE TOTAL BUDGET IS 151,900, NOT 124,340.
UM, WE PUT FORTH IN THE COUNCIL PACKET AND THE PRESENTATION, A NOT ACCURATE NUMBER, UM, NOT AS ACCURATE AS I WOULD'VE LIKED.
AS YOU KNOW, WE HAVE $350,000 BUDGETED FOR ADVERTISING AND IN A LAST MINUTE MEETING TODAY, WE REALIZED THAT WE WOULD BE SHORT ABOUT $25,000 TO THAT COMMITMENT IF WE KEPT IT AT THE $124,000 AMOUNT.
SO THOSE NEW NUMBERS IN RED ARE WHAT ADDS UP TO 151,900 AND CONTRIBUTES TO AN OVERALL, UM, FISCAL YEAR SPEND OF $350,000 IN ADVERTISING.
SO AT THIS POINT, YOU'RE NOT ASKING FOR ANYTHING ADDITIONAL? NO, NO.
IT WAS A MISCALCULATION IN HOW THE NUMBERS ADDED UP TO 350,000.
NOT AN ADDITION TO ANYTHING IN MY BUDGET.
SO THE PROPOSED GETS A LITTLE BIT CONFUSING, SO HANG IN THERE WITH ME ON THIS PART.
THE PROPOSED DRIVE MARKETS ARE THE SAME IN THE PAST.
THAT'S PHOENIX, TUCSON, LA, SAN DIEGO, AND LAS VEGAS.
THE FLIGHT MARKETS ARE THE SAME MARKETS AS THE PAST, BUT DUE TO THE CONTEXT MENTIONED EARLY ABOUT LUXURY TRAVEL PERFORMING WELL AND AN OVERLY COMPETITIVE MARKET DUE TO THE WORLD CUP, WE'RE SUGGESTING HIGH NET WORTH ADVERTISING ONLY TO ALL OF OUR NORMAL FLIGHT MARKET CITIES, EXCEPT IN DENVER, BECAUSE DENVER WILL NOT BE HOSTING A WORLD CUP EVENT.
SO THEIR ADVERTISING WILL REMAIN NORMAL AS IT'S ALWAYS BEEN.
AND THEN WE WOULD LIKE TO TEST A NEW MARKET THIS YEAR, WHICH IS HOUSTON.
WE'D LIKE TO RUN HIGH NET WORTH ADS THERE BECAUSE ONE, IT'S VERY HOT THERE IN THE SUMMER AND WE KNOW THAT WE DO WELL WITH VISITATION FROM PLACES THAT ARE HOT OR HOTTER THAN WE ARE.
AND TWO, THEY HAVE A REALLY HIGH, UM, GROWTH IN MILLIONAIRES IN THEIR CITY AS OF LATE.
SO REGARDING THE CONCEPT, WE'LL CONTINUE AS THE, AS MENTIONED BEFORE WITH THE REDEFINED CONCEPT WITH EXECUTIONS LIKE REDEFINED SUMMER REDEFINE AUTHENTICITY, DATE, NIGHT ARRIVAL, ET CETERA.
SO THESE ARE, UM, THIS IS SAMPLE CREATIVE.
UM, WE DID A SHOOT ABOUT TWO WEEKS AGO.
UM, AND THE THOUGHT AS ANDREW KIND OF MENTIONED WAS, UM, IF WE'RE GOING TO BE ADVERTISING TO A HIGH NET WORTH AUDIENCE MORE THAN KIND OF OUR TEST, UM, OVER THE WINTER, UH, LET'S MAKE SOME AD SPECIFIC, UM, IMAGERY FOR THOSE TYPES OF FOLKS.
SO WE CAME UP WITH, UM, THESE ARE NOT THE FINAL, BUT THIS IS WHAT WAS AVAILABLE, UM, WHEN I WAS CREATING THE, UM, AGENDA BILL.
AS YOU KNOW, WE PLACE SUSTAINABILITY ADVERTISING, UM, TO PEOPLE WHO ARE IN MARKET AND THE PHOENIX AREA.
UM, SO THIS IS SOME SAMPLE OF THAT.
UM, AND HERE'S A LAST ITERATION.
THERE'S MORE THAN THIS, BUT JUST TO GIVE YOU AN IDEA, UM, THIS WAS, UM, KIND OF PIGGYBACKING OFF OF THE REDEFINED GIRLS TRIP THAT WE HAD DONE, UM, A FEW ITERATIONS AGO.
UM, THIS IS ANOTHER VERSION OF THAT.
SO THE TARGET PERSONAS, WE'LL STAY THE, WE'LL STAY THE SAME IN OUR DRIVE MARKETS IN DENVER IN OUR FLIGHT MARKETS.
WE'LL MARKET THE HIGH NET WORTH INDIVIDUAL AND WHEN APPLICABLE PAST VISITORS.
AND THEN, UM, ONE THING THAT WE'VE BEEN WORKING ON, THERE'S, I THINK THAT OUR DESTINATION MARKETING CAMPAIGNS ARE REALLY KIND OF THAT BACKBONE ADVERTISING THAT'S SORT OF OUR CORE BREAD AND BUTTER.
BUT, UM, HOW CAN WE CONTINUE TO SORT OF DO ANCILLARY ADVERTISING AT THE SAME TIME AND JUST FURTHER BUILD OUT A MORE SOPHISTICATED CAMPAIGN? SO, UM, IN PARTNERSHIP WITH THE ARIZONA OFFICE OF TOURISM'S RURAL CO-OP, UM, WE DID DO A PINK BIKE, WHICH IS A MOUNTAIN BIKE PUBLICATION THAT DOES TESTING OF NEW MOUNTAIN BIKES.
IT'S KIND OF THE SCENE AS THE GO-TO LEADER ON MOUNTAIN BIKE INFORMATION.
UM, WE WENT 50 50 ON A BUY TO GET A FIELD TEST THAT WAS CONDUCTED IN MARCH.
UM, AND ADVERTISING THAT EDITORIAL WILL GET RELEASED IN MAY, BUT PART OF THE, THE BUY THAT WE DID INCLUDES ADVERTISING ON OUTSIDE'S CHANNELS, PINK BIKE'S OWNED BY OUTSIDE INC.
[02:00:01]
UM, WE MADE A POINT TO ALIGN THE LAUNCH OF THE PINK BIKE ADVERTISING WITH THE LAUNCH OF OUR CAMPAIGNS THAT'LL LAUNCH ON MAY ONE.AND THEN, UM, LAST WEEK I WAS FILMING WITH A BC 15.
WE'RE GONNA HAVE TWO NEW SEGMENTS THAT'LL AIR ON SONORAN LIVING STARTING IN MID-MAY ONCE THE DRIVE MARKET ADVERTISING STARTS.
THAT'LL TALK ABOUT, UM, RIDING THE SHUTTLE CONNECT TO TRAILHEAD, AND THEN HOW DO YOU REDEFINE SIESTA BY DOING WELLNESS DURING THE HEAT OF THE DAY WHEN YOU'RE OFF THE TRAILS BETWEEN 10 AND FOUR.
SO WE'RE TRYING TO GET MORE SOPHISTICATED AND ROBUST WITH THE WAY THAT WE DELIVER THESE.
IF I MIGHT ADD ANDREW, THAT, UH, PINK BITE EFFORT, MAN, THAT'S SUPER COMPETITIVE.
THAT'S AND SUPER VALUABLE IN THE BIKE INDUSTRY.
IT'S, UH, REALLY A COUP THAT WE WERE ABLE TO GET THAT TO BE HERE IN SEDONA.
'CAUSE THOSE ARTICLES RUN FOR MONTHS AND IMAGES AND CONVERSATION ABOUT BEING IN THE SEDONA AND RIDING HERE.
SO THAT'S A REALLY SPECTACULAR LOOK.
I, WE, WE INITIALLY HAD PLANNED LIKE A NORTHERN ARIZONA COLLABORATIVE WITH PRESCOTT AND FLAGSTAFF THAT FELL THROUGH AND, BUT WE HAD THE MONEY LINED UP WITH A OT AND I JUST ASKED, SO SOMETIMES THAT'S ALL YOU HAVE TO DO.
SO THE MOUNTAIN BIKE FESTIVAL HAS MOVED NOW, RIGHT? SO IT'S NOVEMBER.
SO WHEN WE RUN AN AD IN MAY AND JUNE, ARE THEY OPEN? YOU KNOW, WHEN DO THEY START, UH, RECRUITING PEOPLE TO PARTICIPATE IN THAT? THE MOUNTAIN? SO I KNOW THAT MOUNTAIN BIKERS, AND I KNOW WE HAVE TWO, YEAH, TWO ON COUNCIL BECAUSE I'M, YOU KNOW, ME, I'M A SKATEBOARDER.
I'M NOT QUITE A MOUNTAIN BIKER, BUT, UM, THERE'S REALLY LONG PLANNING CYCLES IN THE MOUNTAIN, IN THE MOUNTAIN BIKE COMMUNITY AND I THINK, YOU KNOW, JUST KNOWING THAT WE'RE IN THE PINK BIKE HEMISPHERE RIGHT NOW OR WILL BE IN MAY, UM, JUST MEANS THAT WE'LL BE, YOU KNOW, IN THEIR PLANNING CYCLE FOR THE NEXT KIND OF YEAR PLUS.
BUT YEAH, IT'S, IT'S SAVED THE DATE TIME, RIGHT? LIKE IF YOU'VE BEEN A PAST PARTICIPANT, THEN YOU'VE ALREADY GOTTEN SAVE THE DATE KINDS OF INFO FROM, UH, THE BIKE FESTIVAL.
YEAH, SO THE TIMING AS WELL, BASICALLY, YOU KNOW, WE TALKED ABOUT LOOKING AT ACTIVITIES THAT ARE GOING ON IN, UH, ARIZONA AND TRYING TO PIGGYBACK SOME OF THOSE WITH RUNNING ADS TO COME TO SEDONA ONE YEAR AT THE WHATEVER FESTIVAL OR WHATEVER SPORTING EVENT.
AND HAVE YOU BEEN ABLE TO, YOU KNOW, KIND OF MAP THAT OUT? YEAH, WE'VE, WE'VE GOT KIND OF A RUNNING LIST OF ONES THAT I'D SAY WE, YOU KNOW, DID NOT, WERE NOT ABLE TO MOVE FORWARD, UM, THIS FISCAL YEAR JUST GIVEN THAT IT WASN'T IN OUR, IN OUR SPENDING AUTHORITY.
BUT, UM, THAT IS INCLUDED IN TOMORROW'S BRIEF DECISION PACKAGE PRESENTATION WITH THE CONTINGENCY FUNDS THAT WE'RE ASKING FOR.
SO THAT WOULD BE, WE WOULD HOPE TO ACTIVATE THAT NEXT FISCAL YEAR UPON YOUR APPROVAL.
SO, OKAY, I WANNA OPEN IT UP TO THE PUBLIC AT SOME POINT.
IS THIS A GOOD, ALMOST SO CLOSE.
UM, I KNOW I'VE, WE'VE DUMPED A LOT OF INFORMATION ON YOU.
UM, SO THE TAB SUPPORTED THE STRATEGY AT THEIR MARCH 4TH MEETING.
UM, AND SO WE'RE LOOKING TONIGHT TO SEE IF THE CITY COUNCIL ALSO SUPPORTS THE PROPOSED SUMMER 2026 CAMPAIGN STRATEGY.
UM, IF APPROVED ADS WOULD LAUNCH MARCH 1ST.
OKAY, SO WE ONLY HAVE TWO CARDS, DAVID KEY AND THEN BETSY KLEIN.
I'LL BE A LITTLE LONGER THIS TIME, SO BEAR WITH ME.
BUT, UM, ALWAYS HERE ON BEHALF OF THE BUSINESS COMMUNITY IN MY ROLE AS PRESIDENT AND CEO OF THE GREATER SEDONA CHAMBER OF COMMERCE IN SUPPORT OF THE EFFORTS OF THE CITY OF SEDONA, CONTINUING TO DOUBLE DOWN ON TOURISM PROMOTION.
I DO WANNA START OFF BY SAYING AWARENESS MARKETING IS HARD AS THE RED ROCKS.
IT IS ONE OF THE MOST CHALLENGING VENTURES ONE CAN GO DOWN.
UM, AND THE ONLY WAY THAT YOU CAN REALLY GET MORE IS YOU GET WHAT YOU PAY FOR.
AND STRATEGY IS GONNA BE THE MOST CRITICAL VARIABLE.
SO I WILL SAY THAT WE'RE CONFIDENT THAT ANDREW HAS SHOWN HIS ABILITY, OF COURSE, WITH LAUREN'S GUIDANCE, UM, TO AGGREGATE DATA, TO GUIDE THE VISION, TO INCREASE THE ROI, SO REALLY PLEASED TO SEE THESE NUMBERS GOING, GOING UP WITH EXCEPTION.
THESE SOCIAL MEDIA PLATFORMS ARE CHANGING THE WAY THEY CALCULATE THINGS, AND WE'RE SEEING THAT TOO ON OUR END WHEN WE'RE CALCULATING OUR DATA YEAR OVER YEAR.
SO, UM, YOU KNOW, IS THERE ROOM TO GROW AND IMPROVE? OF COURSE, THAT'S ALWAYS THE CASE WITH MARKETING.
IT'S A CONTINUAL BATTLE, UM, TO ADDRESS THE SPECIFIC CONCERN, WHICH I DO APPRECIATE OF PRIORITIZING FUNDING RELEVANT TO, YOU KNOW, RESIDENT OVERWHELM IN PEAK.
WE ALL FEEL IT, WE ALL KNOW WHAT IT FEELS LIKE.
YOU KNOW, THIS WORK IS STRATEGICALLY HAPPENING, UM, IN WINTER AND SUMMER
[02:05:01]
FOR A REASON.AND I THINK MOVING THOSE CAMPAIGNS UP IN TIMELINE IS REFLECTIVE OF THAT GOAL TO DO THE WORK OFF SEASON.
SO JUST WANNA REITERATE THAT, YOU KNOW, THAT'S SIMILAR EFFORT TO WHAT WE'RE DOING.
WE'RE REALLY FOCUSING OFF SEASON WHEN THE BUSINESSES NEED IT MOST.
SO A PORTION OF TOURISM SPEND IS EFFECTIVELY AN INVESTMENT IN BUSINESS RETENTION.
IT'S AN INVESTMENT IN NOT THE PEAK, BUT THE VALLEYS.
WHEN IT IS HARDEST, WHEN IT IS, YOU KNOW, WE, WE CAN'T JUST TAKE OUR REPUTATION AS A DESTINATION FOR GRANTED IN A WORLD WITH INCREASING INFLATION, CONSUMERS HAVE LESS MONEY AND THEY STILL HAVE INFINITE CHOICE.
SO WE DEFINITELY NEED TO DOUBLE DOWN ON THAT.
BUT THE CHAMBER IS IN SUPPORT OF EXPANDING THOSE EFFORTS TO REACH VISITORS WITH A HIGHER DISPOSABLE INCOME WHO CAN ENJOY THE BROAD VARIETY OF ARTS, ADVENTURES, RESTAURANT RETAIL, SO MUCH TO OFFER IN SEDONA, OF COURSE, NOT FORGETTING TO SELL SEDONA FOR EVERYONE, RIGHT? THERE'S SOMETHING FOR EVERYONE HERE.
AND IN REACHING THOSE HIGHER CONSUMERS, IT'S JUST GOING TO CONTINUE TO INVOLVE CONTINUED EXPERIMENTATION AND EXECUTION.
SO REALLY IN SUPPORT OF THAT DISCRETIONARY SPEND, THAT EMERGENCY FUNDING, IF YOU WILL, UM, THAT WE PULL THE TRIGGER WHEN WE NEED TO, IF WE NEED TO IN A, IN AN EVER CHANGING WORLD.
JUST WANNA SAY THANK YOU, MAYOR AND COUNCIL FOR EMPOWERING THE TOURISM DEPARTMENT.
ANDREW, WE APPRECIATE YOUR LEADERSHIP FOR THE DMO AND KEEPING BUSINESSES TOP OF MIND IN THESE EFFORTS.
GOOD EVENING, MAYOR AND COUNCIL.
MY NAME IS BETSY KLEIN AND I'M A SMALL BUSINESS OWNER IN SEDONA, AND I WORK CLOSELY WITH THE TENANTS AT HILLSIDE.
SO I'M SPEAKING FOR BOTH MYSELF AS WELL AS ALL OF THEM THIS EVENING.
I'M ALSO SPEAKING SPECIFICALLY TO THE RETAIL SECTOR OF THIS EQUATION.
SEDONA IS FUNDAMENTALLY A VISITOR DRIVEN ECONOMY.
TOURISM HERE REPRESENTS ROUGHLY A BILLION DOLLAR INDUSTRY AND GENERATES APPROXIMATELY 66% OF THE CITY'S SALES TAX REVENUE, THOSE DOLLARS SUPPORT JOBS, WAGES, AND SERVICES THAT BENEFIT RESIDENTS.
WHAT'S IMPORTANT TO REMEMBER IS NOT JUST WHAT THOSE BUSINESSES ARE, BUT WHO THEY ARE.
THE MAJORITY OF BUSINESSES IN SEDONA ARE LOCALLY OWNED, EMPLOYING LOCAL RESIDENTS AND WORKING WITH LOCAL VENDORS.
THAT MEANS WHEN VISITATION DECLINES, THE IMPACT IS AN ABSTRACT, IT CREATES A RIPPLE EFFECT THAT EXTENDS THROUGHOUT THE COMMUNITY.
LAST SUMMER WAS EXTREMELY DIFFICULT FOR MANY SMALL BUSINESSES.
I WAS IN A ROOM WHERE THEY SAID FLAT OUT IF THEY HAD ANOTHER SUMMER LIKE THAT ONE, THEY WOULD BE CLOSED UNLIKE LARGER CITIES, WE DO NOT HAVE THE POPULATION BASE TO ABSORB DECLINES IN VISITATION WHEN FEWER VISITORS COME.
THE IMPACT IS IMMEDIATE AND MEASURABLE.
WE ARE DOING OUR PART, BUSINESSES ARE MARKETING INDIVIDUALLY COLLABORATING AND INVESTING ON OUR OWN RESOURCES TO DRIVE FOOT TRAFFIC.
BUT HISTORICALLY, SEDONA HAS ALSO BEEN MARKETED AS A DESTINATION THAT BROADER AWARENESS MATTERS BECAUSE IT CREATES DEMAND THAT INDIVIDUAL BUSINESSES CANNOT GENERATE A LOAN SUPPORTING RESPONSIBLE DESTINATION.
MARKETING IS NOT ABOUT INCREASING CONGESTION, IT'S ABOUT SUSTAINING THE ECONOMIC FOUNDATION THAT SUPPORTS LOCAL JOBS, LOCAL BUSINESSES, AND ULTIMATELY THE RESIDENTS YOU REPRESENT.
I HAVE TO AMEND MY LAST LINE 'CAUSE I THOUGHT THERE WAS A REQUEST FOR AN INCREASE IN THE BUDGET THIS EVENING,
BUT I DO SUPPORT AN INCREASE IN THE BUDGET, EVEN IF IT'S NOT BEING REQUESTED TONIGHT.
AND I THINK THAT ANDREW AND HIS TEAM ARE DOING A GREAT JOB.
AND I HOPE THAT YOU'LL APPROVE THESE MARKETING CAMPAIGNS AND ANY FUTURE REQUESTS FOR INCREASES.
AND I THANK YOU FOR YOUR TIME.
OKAY, SO THE QUESTION IS, DO WE SUPPORT THIS STRATEGY, DEREK? UM, I DO SUPPORT THE STRATEGY.
I JUST WANNA MAKE A COUPLE OF POINTS.
UM, I'M GLAD TO SEE YOU'RE GOING INTO HOUSTON.
I CAN ATTEST TO THE FACT THAT PEOPLE WANT TO GET THE HELL OUTTA HOUSTON IN THE SUMMERTIME.
UM, YOU MIGHT EMPHASIZE OUR LACK OF HUMIDITY AND OUR LACK OF MOSQUITOES.
UM, THE OTHER THING I'LL SAY IS ON THE, ON THE NET WORTH STUFF, I UNDERSTAND WHY WE ARE MARKETING TO THOSE PEOPLE.
UM, WE'RE LOOKING FOR THE BEST RETURN ON INVESTMENT, BUT LONG TERM, I ALSO DON'T WANT US TO TURN INTO LAS VEGAS.
WE'RE THE ONLY PEOPLE WHO ARE BEING ATTRACTED OR MARKETED TO ARE THE HIGH NET WORTH PEOPLE.
'CAUSE EVENTUALLY, YOU KNOW, IF WE LOOK AT VEGAS RIGHT NOW, EVERYTHING HAS GOTTEN SO EXPENSIVE THAT PEOPLE ARE JUST NOT GOING.
UM, AND I KNOW SEDONA IS ALREADY EXPENSIVE, BUT I DO THINK
[02:10:01]
THERE'S SOMETHING FOR EVERYBODY HERE AND I WANT OUR LONG-TERM MARKETING STRATEGY TO REFLECT THAT.BUT YES, I WILL SUPPORT THIS PROGRAM.
MAY I MAKE A COMMENT? WE AGREE WITH YOU.
AND THE ONLY REASON THAT WE ARE, UM, SUGGESTING SUCH A TARGETED APPROACH LIKE THIS IS BECAUSE DVA SAID YOUR ADVERTISING DOLLARS ARE NOT GONNA GO WHERE THEY NEED TO GO WITH THIS WORLD CUP.
AND, AND WHEN WE LOOKED AT THE OVERLAP OF WORLD CUP CITIES AND OUR TARGET MARKETS OF WHO VISITS HERE, WE WENT.
SO AFTER THE WORLD CUP, YOU THINK THERE'S GONNA BE SOME ADJUSTMENT BACK TO YES.
SO FOR I, I WOULD, THIS PLAN WOULD BE RIGHT NOW FOR OUR WINTER CAMPAIGN TO GO BACK TO REGULAR STRATEGY FOR ALL OF OUR FLIGHT MARKETS.
AND I ALSO COULD NOT AGREE MORE THAT WE DON'T WANNA JUST ONLY DO HIGH NETWORK, SO I SUPPORT THIS, BUT I DO WANNA SAY DON'T LIE.
WE HAVE MOSQUITOES
WE HAVE SOMETHING FOR EVERYONE.
WE DO HAVE SOMETHING FOR EVERYONE.
UM, IT'S WHY WE HAVE HOTELS AT VARIOUS RANGES.
IT'S WHY WE HAVE, UM, FOOD ESTABLISHMENTS AT VARIOUS RANGES.
SO, YOU KNOW, I DON'T, I DON'T WANT US TO EVER EXCLUDE THE FACT THAT PEOPLE WHO ARE HERE, UM, ON WHATEVER A SHOESTRING LOOKS LIKE THESE DAYS, UM, SHOULD STILL COME HERE.
UM, AND THEY SHOULD STILL ENJOY SEDONA.
EVEN IF THEY DON'T NECESSARILY ENRICH THE HIGH END OF OUR BUSINESSES, THEY WILL STILL ENRICH SOME OF OUR BUSINESSES.
UM, OUR DRIVE MARKETS REMAIN THE SAME AS THEY ALWAYS HAVE.
IT'S ONLY THE FLIGHT MARKETS THAT WE WERE IN.
AND DENVER REMAINS THE SAME AS WELL SINCE THEY DON'T HAVE A MATCH THERE.
UH, I SUPPORT THE, THE CAMPAIGN AS PROPOSED.
ONE OF THE THINGS THAT I'D LIKE TO HEAR ABOUT IN THE FUTURE IS, YOU KNOW, AS YOU'VE CONTINUED TO COLLECT MORE DATA FROM, UH, MULTIPLE CAMPAIGNS, UM, HOW DO WE THINK ABOUT OPTIMIZING THE SPEND BETWEEN THE DIFFERENT MARKETS? LIKE I KNOW YOU WANT TO KEEP SPENDING ON THE FLY MARKETS, BUT THE ROI IS BETTER ON THE DRIVE MARKETS AND, YOU KNOW, IN THEORY, WE'VE NOT SPENT TO A POINT OF DIMINISHING RETURN ON THOSE.
SO I WOULD LIKE TO HEAR MORE ON THE PHILOSOPHY, THE STRATEGY BEHIND HOW WE'RE SPLITTING THE MONEY OUT BETWEEN THESE MARKETS, UM, IN THE FUTURE.
ANYBODY ELSE HAVE ANY COMMENTS? PETE, YOU MAYOR? I, UH, DON'T HAVE MUCH TO ADD.
I'M GONNA SUPPORT THE STRATEGY AS OUR STAFF, AS, AS RECOMMENDING HERE.
I DID WANNA JUST COMMENT ON, YOU KNOW, SUPPORTING CONVERSATIONS THAT I'VE HAD WITH YOU IN THE PAST, AND I HEAR CONTINUED QUESTIONS ABOUT, YOU KNOW, THIS ACCURACY OF THE RAS, THE AD SPEND NUMBERS, THE ROI NUMBERS.
YOU KNOW, IT'S A OFTEN CALLED ATTRIBUTION BIAS OR LAST CLICK INFLATION OF THESE NUMBERS.
THERE ARE WAYS TO TEST, WE COULD THINK ABOUT HOLDING OUT GEOGRAPHIC HOLDOUT AT SOME POINT AND KIND OF CALIBRATE, YOU KNOW, WHAT WE, WE THINK IS HAPPENING.
BUT I ALSO AGREE WITH VICE MAYOR FOLTZ THAT EVEN IF YOU DERE DERATE THESE NUMBERS BY A SIGNIFICANT MARGIN, THEY'RE STILL GOOD.
AND SO, YOU KNOW, THAT'S O THAT'S OKAY, BUT THAT DOESN'T MEAN WE SHOULDN'T TRY TO FEEL BETTER ABOUT, YOU KNOW, ADDRESSING SOME OF THESE ISSUES.
BECAUSE WHETHER IT'S 32 TO ONE OR 10 TO ONE, RIGHT, 10 TO ONE MIGHT BE MORE ACCURATE, 32 MIGHT MAKE US FEEL BETTER.
BUT, YOU KNOW, IF IT'S MORE ACCURATE, IT'S, IT'S STILL A GOOD NUMBER AND WE SHOULD BE PROUD OF THAT.
SO, AND I'VE GOT SOME INFORMATION I'LL SHARE WITH YOU.
I HAD AN EXPERIENCE THIS PAST WEEKEND GOING TO LAS VEGAS.
I WAS SHOCKED AT THE HOW EXPENSIVE IT HAS BECOME THERE.
AND I WAS TALKING TO SOME OF THE RESTAURANT OWNERS OR MANAGERS.
IT WAS PACKED AND THE HOTEL WAS PACKED.
YOU COULDN'T MOVE, BUT PEOPLE WERE NOT DINING BECAUSE IT WAS SO EXPENSIVE TO DINE.
AND I NOTICED PIZZA BOXES OUTSIDE DOORS.
AND I THINK PEOPLE ARE FINDING, YOU KNOW, OTHER WAYS TO COMPENSATE FOR IT.
BUT I DON'T WANT US TO BE IN A POSITION WHERE WE'RE DOING HARM TO OUR BUSINESSES BECAUSE WE'VE OUT-PRICED THEM.
SO I, I AGREE WITH MY COLLEAGUES.
[02:15:01]
UH, I HAVEN'T BEEN TO LAS VEGAS IN YEARS, BUT IT WAS SHOCKING.AND YOU DO HAVE TO ADJUST BECAUSE, YOU KNOW, IT'S JUST TOO MUCH MONEY.
SO I THINK WE HAVE A CONSENSUS ON MOVING FORWARD WITH THIS, UH, CAMPAIGN.
TO OUR STAFF AND TO OUR CONSULTANTS.
YES, WE'VE BEEN AT IT SINCE TWO O'CLOCK.
THANKS, CHRISTIAN, YOU'RE FREE TO GO.
I REALLY ENJOYED THE TOURISM PRESENTATION.
I'VE SEEN YOUR NAMES TAKE, I THINK THEY'RE REALLY WELL DONE.
[9.d. AB 3340 Discussion/possible action regarding a funding policy for the City of Sedona’s proportionate share of the Arizona State Retirement System (ASRS) Net Pension Liability (NPL).]
ITEM AB 34 40 DISCUSSION, POSSIBLE ACTION REGARDING A FUNDING POLICY FOR THE CITY OF SEDONAS, PROPORTIONATE SHARE OF THE ARIZONA STATE RETIREMENT SYSTEM, A SRS NET PENSION LIABILITY.UH, MAYOR, MEMBERS OF COUNCIL, BARBARA WHITEHORN, DEPUTY CITY MANAGER.
I'M HERE WITH OMAR DANI, WHO IS A MANAGING DIRECTOR WITH STIFEL.
AND THEN WE ALSO HAVE MARK READER, WHO I KNOW MOST OF YOU HAVE MET, UM, ALSO A MANAGING DIRECTOR.
AND I KNOW THAT YOU HAVE SEEN THIS PRESENTATION, YOU'VE READ IT, AND I KNOW THAT YOU HAVE A NUMBER OF QUESTIONS.
AND IN THE INTEREST OF TIME, UNLESS YOU WANT ME TO, WE CAN ANSWER QUESTIONS OR SPECIFIC QUESTIONS ABOUT THE PRESENTATION.
BUT I KNOW YOU HAVE A LOT OF INTEREST IN DIFFERENT THINGS ABOUT THIS THAT I DON'T KNOW ARE NECESSARILY ADDRESSED IN THE PRESENTATION.
SO, WHO WANTS TO START? I KNEW IT.
HOW DID I KNOW THIS?
CAN YOU JUST DESCRIBE FOR THE PUBLIC'S BENEFIT HOW ALL THE MUNICIPALITIES ARE IN THIS POSITION OF HAVING UNDERFUNDED PENSION LIABILITIES? GOOD EVENING, VICE MAYOR.
CAN, CAN EVERYONE HEAR ME OKAY? MM-HMM
UM, WELL, THANK YOU FOR THAT QUESTION.
IT'S PROBABLY THE MOST, UM, IMPORTANT AND CENTRAL QUESTION THAT YOU'RE GOING TO ASK WHEN ADDRESSING THIS.
RIGHT? UM, SO ARIZONA STATE RETIREMENT SYSTEM IS PROBABLY ONE OF THE BEST RUN RETIREMENT SYSTEMS IN THE NATION WHEN JUDGED BY INVESTMENT PERFORMANCE, WHEN JUDGED BY SERVICE STANDARDS, AND OTHERWISE, UNLIKE A LOT OF PLACES AROUND THE NATION, THE REASON THAT THE A SRS MOVED TO A 75% FUNDING LEVEL IS LARGELY, UH, ACTUARIAL AND DEMOGRAPHIC.
UM, WHEN WE LOOK AT ACTUARIAL, THERE HAS BEEN A MOVE TO, UH, OVER THE YEARS, ACROSS THE INDUSTRY TO CHANGE THINGS LIKE RETURN ASSUMPTIONS, UM, UH, PAYROLL GROWTH AND OTHER THINGS.
A SRS TOOK MORE CONSERVATIVE, THEY DE-RISK THEIR, UM, FUTURE EARNINGS ESTIMATES BY MOVING THEIR RATES DOWN FROM EIGHT TO SEVEN.
THAT'S THE APPROPRIATE THING TO DO.
BUT IN DOING THAT, THAT TAKES A FULLY FUNDED PENSION WHEN PAYMENTS WERE CALCULATED BASED ON THE 8% RETURN AND TAKES IT DOWN TO A LESS FUNDED PENSION.
NOW, THOSE ARE OF COURSE, ONLY ASSUMPTIONS, AND I'LL CALL THEM FUND WITH NUMBERS.
UM, THE OTHER BIG ONE, AND FRANKLY THIS IS ONE THAT IS ENTIRELY EXOGENOUS, UH, IS, IS LONGEVITY.
UH, IN THE LAST 20 YEARS, UH, LONGEVITY IN THE UNITED STATES HAS INCREASED BY 3.8 TO 4.2 YEARS, DEPENDING ON WHICH MEASURES YOU USE.
NOW FOR EACH OF THOSE YEARS OF LONGEVITY, WHICH IS GREAT NEWS FOR ALL OF US AS AMERICANS, UM, THANK GOD, UM, YOU KNOW, THE, THE CHANGE IN FUNDING RATIO IS ANYWHERE FROM THREE TO 5%, DEPENDING ON THE LENGTH OF AMORTIZATION AND ALL THOSE THINGS.
SO WHEN YOU STACK ALL THOSE THINGS TOGETHER, UM, IN FACT, THE FACT THAT THE, AS RS IS ONLY IS 75% FUNDING FUNDED IS ACTUALLY A REPRESENTATION OF THEIR STRONG MANAGEMENT BECAUSE THEY HAVE, HOW HAVE THEY OUTRUN LONGEVITY IN SOME OF THOSE OTHER THINGS, LARGELY BY EARNING MORE THAN THEIR ASSUMED RATE OF RETURN.
RIGHT? IF YOU LOOK AT THE TRAILING, UH, 20 YEAR, I BELIEVE IT IS EIGHT OH, JUST NORTH OF 8%.
UM, TRAILING 10 YEARS, EXCUSE ME, 8, 8 23.
AND THE TRAILING 20 YEAR IS, UH, 7 57.
SO ALL OF THOSE EXCESS EARNINGS ARE ACTUALLY BOLSTERING THE FUNDED RATIO.
AND SO WHEN I THINK OF HOW I WOULD, WHERE I SITTING IN, IN YOUR SEAT OR THE
[02:20:01]
SEAT OF MANAGEMENT HERE, UM, IF YOU'RE TO THINK OF THE HIGHEST AND BEST USE OF EXCESS CASH THAT YOU HAVE, APPLYING IT TOWARDS THIS LIABILITY, WHICH OTHERWISE IS, YOU KNOW, COUNTING ON AN ACCOUNTING BASIS AS A 7% DEBT AGAINST SEDONA IS ACTUALLY GOOD POLICY.BUT AGAIN, YOUR QUESTION, AND I'VE PROBABLY STARTED TO EXTEND FURTHER, SO THANK YOU FOR YOUR INDULGENCE OF THAT.
YOUR QUESTION IS, AS TO HOW WE GOT HERE, IT'S LARGELY THOSE THREE THINGS.
THE ACTUARIAL ASSUMPTION OF ASSUMED EARNINGS, PAYROLL GROWTH, UM, AND THEN LONGEVITY HAS BEEN THE BIG DRIVER, UH, FOR THE A SRS.
BUT WHEN YOU TALK ABOUT THE, UH, GOOD USE OF FUNDS HERE, YOU'RE TALKING ABOUT THE CPP PROGRAM AS AN ALTERNATE OVER WHAT WE GET ON OUR MONEY OTHERWISE THAT WE HAVE INVESTED THAT'S RIGHT.
I, I MEAN THE, THE GENERAL RULE OF THUMB HISTORICALLY IS, IS UNDERFUNDED PENSIONS ARE VIEWED VERY NEGATIVELY.
RIGHT? ESPECIALLY IN THE PRIVATE SECTOR, IT'S VIEWED VERY NEGATIVELY.
SO YOU'RE TELLING US WE SHOULD ACTUALLY FEEL PRETTY OKAY WITH HAVING AN 11 MILLION PLUS UNDERFUNDED LIABILITY.
THAT KIND OF FLIES TO THE HISTORICAL LOGIC THAT I'VE BEEN AWARE OF.
I, I, I GUESS MY POINT IS IT IS CERTAINLY A LIABILITY, BUT IT IS NOT DRIVEN BY ANY MANAGEMENT DECISIONS MADE BY THE CITY HERE, OF COURSE, OR, OR FOR THAT MATTER, LARGELY, I WOULD SAY IT WAS NOT DRIVEN BY THE AS SRS, IT'S MORE EXOGENOUS FACTORS.
AND SO TO ME, I SEE THIS APPLICATION OF MONEY AS A PROACTIVE STANCE ON SOMETHING THAT HAS OCCURRED AND HAPPENED TO THE CITY AND THE A SRS AS A WAY TO MITIGATE THAT, THAT UNDERFUNDING.
SO THEN WHAT IS IT THAT THEY'RE DOING NOW THAT IN 25 YEARS EXTINGUISHES THE $15 BILLION OVERALL STATEWIDE LIABILITY? SO LARGELY BY DE-RISKING THE FUTURE STREAM, YOU KNOW, HAVING THE ASSUMPTIONS BE MORE CONSERVATIVE, YOU KNOW, THEY REALLY HAVE DUG, DUG INTO ALL THOSE DEMOGRAPHIC CHANGE, WHICH IS, I CAN'T TELL YOU WHAT'S GOING TO HAPPEN IN THE NEXT 20 YEARS DEMOGRAPHICALLY, IF, IF WE START LIVING TO BE 120.
WELL, YOU KNOW, WE, WE'LL BE TALKING ABOUT THIS AGAIN IN A FEW YEARS MM-HMM
BUT, UM, THE THINGS THAT THEY HAVE DONE IN TERMS OF THEIR, UH, EXPENSE RATIOS IN TERMS OF HOW THEY INVEST, THEY HAVE, UH, AMONGST SOME OF THE LOWEST IN TERMS OF THEIR NET RETURNS THEY'VE PERFORMED AT THE TOP QUINTILE.
SO WHEN YOU LOOK UP HERE AT RETURNS, UM, IN ANY SORT OF RELEVANT HISTORIC PERIOD, THEY'VE OUTPERFORMED, AND THAT IS PART OF THEIR STRATEGY, UH, TO, UM, SHRINK THE UNFUNDED LIABILITY.
THEY'VE ALSO KEPT, UH, YOU KNOW, THE CONTRIBUTION RATES AT THIS POINT, RATHER THAN JUST SORT OF TREAD WATER AND ALLOW THE, UM, UNFUNDED LIABILITY TO REMAIN, OR THE, AND EXCUSE ME, NET PRESENT NET PENSION LIABILITY.
UM, THEY ARE AMORTIZING IT MORE RAPIDLY, UM, AS RAPIDLY AS THEY CAN BY USING THOSE CONTRIBUTIONS TODAY AND PUTTING IT AGAINST THE NET NET PENSION LIABILITIES.
IS IT A PRACTICAL WAY OF THINKING ABOUT IT THAT OKAY, FOR EVERY DOLLAR I'M PUTTING IN, AND LET'S SAY, LET'S SAY IT'S EARNING IT AT THAT AVERAGE 7.57%, BUT AS A, AS AN EMPLOYEE CONTRIBUTING, AM I ACTUALLY GETTING THE BENEFIT OF THAT 7.57, OR AM I REALLY ONLY GETTING LIKE FIVE? AND THE DIFFERENCE IS PART OF WHAT'S HELPING PAY OFF THIS LIABILITY PLUS EXPENSES OF THE SYSTEM AND SO FORTH, AS, AS AN EMPLOYEE, YOUR BENEFITS ARE DETERMINED BY STATUTE, RIGHT? AND, AND THE SORT OF FORMULA PUT FORWARD IN STATUTE, UM, AS, AND ULTIMATELY OVER THE LIFE OF AN EMPLOYMENT RELATIONSHIP, YOU WOULD EXPECT THAT TO BE REFLECTED IN THE CONTRIBUTION RATE.
OBVIOUSLY THERE'S MOVEMENT YEAR OVER YEAR.
YOU DON'T GET THE UPSIDE NECESSARILY OF INVESTMENT RETURNS, BUT YOU GET IT IN TERMS OF LOWER CONTRIBUTION RATES IN THE FUTURE.
UM, AND FRANKLY, MORE SECURE PENSION BENEFITS THAN YOU'D HAVE OTHERWISE.
I THINK I'VE ASKED MORE THAN ONE QUESTION.
THAT WAS YOUR ONE QUESTION, RIGHT? IT MIGHT JUST BE, WE'LL SEE.
UH, I HAVE A QUESTION FOR YOU.
UH, IS THIS MONEY PROTECTED? SO IN OTHER WORDS, THEY CAN'T TAKE IT OUT TO, TO FUND A BUDGET SHORTFALL OR SOME OTHER, UM, YOU, YOU HAVE THE FORTUNATE, THIS IS ABOUT AS PROTECTED AS MONEY COULD GET FROM A LEGAL PERSPECTIVE.
ONCE, IN FACT, WE WERE TALKING ABOUT THIS BEFORE YOU CAME BACK, UH, WITH YOUR TEAM, ONCE YOU PUT A A, YOU KNOW, A DOLLAR IN, IT BECOMES IRREVOCABLE.
AND SO NO MATTER, UH, WHAT YOU OR AN EMPLOYEE WANTED TO DO, UM, SHORT OF A CHANGE TO, YOU KNOW, TO FEDERAL CODE TO IRS CODE, THERE WOULD BE NO WAY TO GET IT OUT, UH,
[02:25:01]
OTHER THAN BY, UH, THERE'D BE NO WAY TO GET THAT DOLLAR OUT YOU PUT IN.NOW, OF COURSE, WITH THIS PROGRAM, IT IS FLEXIBLE IN THE SENSE THAT EVENTUALLY YOUR MONEY COMES OUT, BUT IT COMES OUT IN REDUCING FUTURE CONTRIBUTION RATES, RIGHT? AND SO YOU COULD, ONE OF THE THINGS THAT YOU COULD CONSIDER, AND THIS IS A CONVERSATION WE'VE HAD IN A NUMBER OF COMMUNITIES, IS YOU TAKE THAT OUT SORT OF ON A UNIFORM OR PROPORTIONAL BASIS OVER TIME AS YOU THINK OF LIKE MAYBE PSPS, HOW A LOT OF PEOPLE DID THAT, OR, UH, WOULD YOU SORT OF SAVE IT FOR A RAINY DAY WHEN SOME OTHER, UH, UH, NEED OCCURS FOR THE CITY AND REDUCE YOUR CONTRIBUTION RATES AT THAT TIME.
UM, YOU KNOW, UH, UM, OTHER COMMUNITIES WE TALK TO, THEY TALK ABOUT NATURAL DISASTERS, RIGHT? THAT THEY WANT TO RESERVE AGAINST THAT IN A LONG SENSE.
OTHER PEOPLE LOOK AT THE CYCLICALITY OF THEIR ECONOMY AND SAY, GEE, WELL THINGS ARE GOOD.
WE WANT TO KEEP THAT IN AT THOSE STRONG INVESTMENT RETURNS.
BUT IT'S SORT OF THE SECOND RAINY DAY FUND FOR THEM IN THE EVENT THAT FOR WHATEVER THEIR DRIVERS OF THEIR ECONOMY MAY GO IN A DIFFERENT DIRECTION.
UH, SO I WANT TO JUST ADD ON A LITTLE BIT TO VICE MAYOR FO'S QUESTION.
WHAT P-P-S-P-R-S DID SOME SIGNIFICANT CHANGES A HANDFUL OF YEARS AGO, AND THEIR TIER THREE CREATED A MODEL WHERE FUTURE UNFUNDED LIABILITIES ARE SPLIT BETWEEN EMPLOYEES CONTRIBUTIONS AND THE EMPLOYER'S CONTRIBUTIONS.
AND THAT, I BELIEVE, HAS BEEN A SIGNIFICANT MOTIVATION IN THE BOARD'S REALLY GETTING CONTROL OF THE 12 DIALS ON THE BLACK BOX AND, AND, UH, AND KIND OF ASSURING A HUNDRED PERCENT FUNDED LEVEL HAS A SRS DONE REFORMS TO THAT DEGREE.
SO I THINK P-S-P-R-S AND A SRS HAD SORT OF A VERY DIFFERENT HISTORY, RIGHT? YEAH.
UM, PS PS HAD, UH, HISTORICAL ISSUES WITH THINGS LIKE THE PERMANENT BENEFIT INCREASE AND OTHER SORT OF THINGS THAT I WOULD LIKEN TO.
UM, IT USED TO BE FILLING A LEAKY BUCKET.
UM, AND SO THAT TIER THREE WAS PART OF THEIR FILL THE LEAKY BUCKET STRATEGY FOR PS SPEARS, AND I THINK VERY APPROPRIATELY AND WELL CRAFTED IN THAT CONTEXT.
UM, ANS RS HAD OTHER SORT OF PROGRAM, THEY DID NOT HAVE THAT SAME ISSUE EXACTLY, BUT THEY HAD OTHER SORT OF PROGRAMMATIC ACTUARIAL ISSUES THAT THEY NEEDED TO TAKE CARE OF AND UM, UH, PROGRAMMATIC ONES THAT THEY DID, BUT THEIR BUCKET NEVER HAD THE SAME CHALLENGE, SO THEY HAVEN'T MADE THOSE LEGISLATIVE CHANGES.
UM, IT'S NOT THIS, UM, SO IT'S NOT A ONE-TO-ONE CHANGE, BUT THEY'VE CERTAINLY OVER THE YEARS WHEN THERE HAVE BEEN PROGRAMMATIC, LIKE I THINK THEY DID SOME THINGS RELATIVE TO THEIR COLAS, UM, THAT WERE, YOU KNOW, VIEWED AS NOT BEST IN PRACTICE, UH, THAT THEY'VE MADE THOSE LEGISLATIVE CHA UH, CHANGES INCREMENTALLY.
THEIR NEED, THEIR NEEDS WEREN'T THE SAME AS P PEER, SO THEY WEREN'T SORT OF MIRRORED.
ONE QUESTION I DID HAVE WAS, I KNOW THAT THE STATUTE A AR 38, 7 37 AUTHORIZES A ONE 15 TRUST AS AN OPTION AS WELL.
THE STAFF REPORT REALLY DIDN'T TALK ABOUT THAT.
CAN YOU JUST GIVE ME SOME BACKGROUND AS TO WHY YOU CHOSE ONE VERSUS THE OTHER? UM, I THINK THE STATUTE WAS, IF YOU LOOK AT A SRS, ONE OF THEIR CENTRAL TENANTS OF HOW THEY OPERATE IS WANTING TO BE FLEXIBLE AND AS EMPLOYER FRIENDLY AS POSSIBLE.
AND SO THEY WANTED TO PROVIDE PEOPLE WITH DIFFERENT CHOICES.
FRANKLY, IF, IF I WERE, UM, YOU KNOW, YOU COULD LOOK AT BOTH OF THOSE CHOICES, BUT THE CPP, YOU KNOW, IF YOU GO WITH A ONE 15 TRUST, YOU'RE GONNA BE PAYING ADDITIONAL FEES AND NOT NECESSARILY GETTING WHAT YOU, WHAT THE ONE 15 TRUST GIVES YOU IS THE CHANCE NOT FOR BETTER INVESTMENT.
IN FACT, IT'S PROBABLY NOT AS STRONG, BUT WHAT IT GIVES YOU IS, IF YOU WERE LOOKING THE DESIGN OF IT, OR AT LEAST THE INTENTION WAS IF YOU WANTED TO PUT PARK MONEY FOR A SHORT PERIOD OF TIME AND HAVE IT BE MORE LIQUID, YOU COULD SORT OF PARK IT OVER THERE AND THEN HAVE OTHER VEHICLES TO GET IT OUT.
UM, FOR THE PURPOSES THAT YOU'RE CONTEMPLATING HERE, I WOULDN'T SEE THAT AS BEING, UM, EFFICIENT.
UM, IT COULD CERTAINLY BE CONSIDERED, BUT I THINK YOU WOULD HAVE HIGHER FEES, LOWER RETURNS, AND WITHOUT THE LIQUIDITY NEED, UNLESS YOU HAD A REALLY SPECIFIC NEED WHERE YOU SAID, GEE, WE NEED THIS IN EXACTLY THREE YEARS.
AND, AND I AGREE, I THINK THE RETURNS DO LOOK PRETTY GOOD AND, YOU KNOW, THEY'VE BEEN CONSISTENT OVER THE YEARS, AND IF WE DID A ONE 15 TRUST, WE WOULD BE ESSENTIALLY IN CHARGE OF THAT INVESTMENT.
WE WOULD CERTAINLY WANNA BE CONSERVATIVE WITH IT, AND I DON'T THINK WE'D GET THOSE KIND OF NUMBERS.
[02:30:01]
WITH YOU, AND FRANKLY, I MEAN, THE SCALE THAT YOU NEED TO GET THE TYPE OF NUMBERS THAT AS RS GETS, YOU KNOW, THEY HAVE THE BENEFIT OF AN ENORMOUS PORTFOLIO, UM, AND A AND A REALLY, UH, SPECIALIZED TEAM THAT, YOU KNOW, PRODUCES THESE RESULTS YEAR OVER YEAR.BUT I, I AGREE ENTIRELY WITH YOUR ANALYSIS.
MY LAST QUESTION HAD TO DO WITH THE 30 YEARS.
I, COULD YOU JUST GIVE ME SOME, A LITTLE BIT MORE DETAIL ABOUT WHAT THAT 30 YEARS MEANS? DOES THAT MEAN ONCE WE OPEN THIS FUND AT THE END OF 30 YEARS, WE GOTTA GET RID OF IT? OR IS IT PER CONTRIBUTION? OR CAN WE DO MORE THAN ONE FUND OVER TIME, 15 YEARS FROM NOW OR
AND THIS PROGRAM, WHEN IT WAS CRAFTED, WAS DESIGNED TO BE AS FLEXIBLE AS YOU WANT IT TO BE, TO TELL YOU HOW FLEXIBLE IT IS, THE MAXIMUM THEY WANTED TO HAVE SOME SORT OF SUNSET, RIGHT? YOU KNOW, FOR TRACKING PURPOSES AND ALL THOSE OTHER THINGS.
SO THEY SAID 30 YEARS IS SORT OF THE OUTSIDE BOUND OF HOW LONG WE WANT YOU TO PARK YOUR MONEY WITH US IN THIS PROGRAM AND THEN HAVE THE IDEA THAT YOU WOULD'VE USED YOUR OFFSET CREDITS OFF, UH, UP.
ALL THAT BEING SAID, THIS PROGRAM IS DESIGNED AND IT'S ACTUALLY UNIQUE IN THE SENSE THAT YOU COULD HAVE A SET IT AND FORGET IT SCHEDULE WHERE YOU SAY, HEY, I WANT THIS PROPORTIONAL OVER THE NEXT 10 YEARS, 20 YEARS, 30 YEARS.
BUT, UM, OR YOU COULD SAY, I DON'T WANNA USE ANY OF IT IT UNTIL I NEED IT.
WHICH IS, UH, LARGELY WHAT, UM, SOME OTHER EMPLOYERS THAT WE'VE WORKED WITH HAVE DONE WHERE THEY'RE JUST SETTING IT BACK THERE AND LETTING IT GROW, WHICH FRANKLY GIVES YOU THE BEST ECONOMICS, RIGHT? BECAUSE YOU GET THE, THE BENEFIT OF COMPOUNDING OVER TIME.
ALL THAT BEING SAID, UM, YOU CAN ACTUALLY CHANGE IT, THE POLICY SAYS WITHIN A 60 DAY NOTICE PERIOD, BUT IN A, AS A PRACTICAL MATTER, UH, IT'S GENERALLY WITHIN ONE PAYROLL CYCLE THAT YOU'RE ABLE TO MAKE AMENDMENTS.
OH, I THOUGHT I WAS GETTING TIMED OUT, UM,
BUT, UM, BUT NO, AS A PRACTICAL MATTER, YOU CAN, UH, ACTUALLY CHANGE IT WITHIN ONE TO TWO PAYROLL CYCLES BECAUSE THEIR IT INFRASTRUCTURE IS SO AMAZING.
AND WE WERE JUST SHARING BEFORE WE CAME BACK IN, UM, IF I LOOK AT OTHER PENSION FUNDS I'VE WORKED WITH, I'VE, I'VE DONE THIS FOR 24 YEARS, SO I'VE WORKED WITH PENSION FUNDS COAST TO COAST.
THERE ARE SOME THAT ARE LITERALLY, WELL, NOT QUITE WITH PUNCH CARDS, BUT THEY'RE LIKE ONE STEP AWAY FROM PUNCH CARDS.
UM, A SRS HAS REALLY THE STATE OF THE ART THAT THEY CAN MAKE THESE ADJUSTMENTS ON THE FLY, AND IT'S ACTUALLY VERY EMPLOYER FRIENDLY.
UM, ANY MEMBER OF YOUR MANAGEMENT TEAM OR DESIGNATED MEMBER OF YOUR MANAGEMENT TEAM COULD CONTACT THEM AND SAY, WE WANT TO CHANGE OUR OFFSET FROM ZERO TO X, OR, YOU KNOW, WHATEVER IT IS.
THEN I'M GONNA ADD ONE OTHER, SO JUST MAKE SURE THAT I'M UNDERSTANDING THIS CORRECTLY.
I LOOKED AT THIS WHEN I READ THE REPORT, YOU KNOW, MAYBE A SRS ON ITS OWN INITIATIVE IS FIXING THE BOAT AND WE'LL SEE IT GET CLOSER TO A HUNDRED PERCENT OVER TIME.
MAYBE NOT, UM, SKEPTICAL THAT THEY'LL BE ABLE TO MAKE IT THERE.
UM, THERE'S LOTS OF REASONS WHY THEY SET THE NUMBERS THE WAY THEY DO.
UH, WE, WE DON'T NEED TO GET INTO THAT.
I LOOK AT THIS AS, AND I THINK YOU SAID THE SAME THING.
IT COULD BE LOOKED AT AS A RAINY DAY FUND.
WE START PUTTING MONEY INTO THAT.
MAYBE WE DON'T CHA MAKE A CHANGE TO OUR CURRENT CONTRIBUTIONS AND WE SEE HOW A SRS IS GONNA DO, BUT IF THERE'S A RAINY DAY EVENT SOMEDAY IN THE FUTURE, OUR ECONOMY HAS A LITTLE TROUBLE, OUR REVENUES START TO DROP, WE COULD, INSTEAD OF PAYING OUR NORMAL CONTRIBUTION OUT OF THE GENERAL FUND OR WHEREVER IT COMES FROM, WE COULD STOP AND JUST TURN TO THIS FUND AND MAKE THAT AND SORT OF HELP THAT IN, IN THOSE TIMES.
IS THAT THE CORRECT UNDERSTANDING? YES, THAT'S EXACTLY RIGHT.
AND YOU HAVE THE BENEFIT OF THIS FUND, UM, BEING INVESTED IN A WAY THAT OTHERWISE, UH, YOUR, YOUR INVESTMENT POLICY, UM, LOCALLY WOULDN'T ALLOW.
YOU KNOW? 'CAUSE OTHERWISE, IF, IF YOU PUT IT IN THE LGIP OR OTHER SORT OF CASH MANAGEMENT VEHICLES, YEAH, YOUR RETURNS ARE, YOU KNOW, THEY'RE WHAT THEY ARE.
UM, IN THIS, IN THIS WAY, YOU'RE, YOU'RE PICKING UP HUNDREDS OF BASIS POINTS OF DIFFERENTIAL.
ANY OTHER QUESTIONS, DEREK? UM, I WANNA GO BACK TO SOMETHING THE MAYOR SAID EARLIER.
SO ONCE THE MONEY IS PUT IN, IT'S PROTECTED, YOU SAID IT WOULD TAKE FEDERAL LEVEL CHANGES.
IS THERE ANYTHING THE STATE COULD DO TO ACCESS THIS MONEY? I DON'T WANT THEM TO AMEND THE ARIZONA REVISED STATUTES IN A WAY THAT, YOU KNOW, THEY SAY, WELL, SEDONAS FULLY FUNDED, SO WE'RE GONNA GO AHEAD AND BORROW FROM THEM TO, I, I'M NOT AN ATTORNEY, BUT I WOULD SAY NO, THERE'S NOTHING THAT, THAT THE STATE COULD DO RELATIVE TO TAKING OUT THE CONTRIBUTIONS YOU'VE PUT IN.
SO, OR PIGGYBACK ON THAT THERE, WHEN YOU LOOK AT OUR RETURN, AND I KNOW THAT WE'RE VERY CONSERVATIVE IN OUR OWN INVESTMENTS AS A CITY VERSUS THE A SRS PORTFOLIO.
WHAT IS THE DIFFERENCE IN THE INVESTMENT STRATEGY THAT ALLOWS THEM TO EARN SUCH A LARGER, UH, AMOUNT OF RETURN THAN WE DO? I THINK IT'S
[02:35:01]
A COUPLE THINGS.UM, YOU KNOW, LARGELY WHEN YOU CONSIDER LOCAL INVESTMENTS, IT'S GENERALLY CASH MANAGEMENT VEHICLES.
SO IT WOULD BE TREASURIES, GOVE'S, UM, OTHER SORT OF TAXABLE MUNICIPAL DEBT, OTHER VERY LOW RISK PRINCIPLE PROTECTED INVESTMENTS, UM, THAT I THINK IS VERY APPROPRIATE BY THE WAY, FOR CASH MANAGEMENT STRATEGIES AND CONSISTENT WITH MUNICIPAL BEST PRACTICE.
WHEN YOU LOOK AT THE AZAR S THEY LIVE IN A PERPETUAL LIFE, RIGHT? SO THEY INVEST IN A WAY THAT THEY CAN INVEST IN, UM, ALT ALTERNATE ASSET CLASSES, AND THEY ARE, THEY CAN GO BIGGER AND CHUNKIER, UH, THROUGH, UM, PRIVATE EQUITY, PRIVATE CREDIT, WHICH OF COURSE NOW, YOU KNOW, THERE'S SOME WORK, BUT THEY'VE DILIGENCE THOSE THINGS AND HAVE THE SCALE TO BUY THINGS THAT FRANKLY INDIVIDUALS CAN'T.
RIGHT? UM, IF YOU'RE SITTING ON BILLION, TENS OF BILLIONS OF DOLLARS, YOU HAVE A, AN INVESTMENT STAFF THAT CAN DILIGENCE THINGS, CROSS DILIGENCE THINGS, AND, UM, YOU KNOW, INVEST FOR THAT THING THAT MAY BE, UH, A 10, 20, 50 YEAR HORIZON IN TERMS OF RETURNS IN THE WAY THAT OTHERWISE INDIVIDUALS WOULD NOT.
AND SO THAT, UH, WOULD ACCOUNT FOR THE FACT THAT THEY HAVE HIGHER RETURNS.
GRANTED, THE OTHER, THE OTHER THING OF COURSE, IS THE FACT THAT IT IS NOT ONLY FIXED INCOME, IT WOULD ALSO INCLUDE SOME EQUITY LIKE EXPOSURE.
UM, BUT SO, SO IT'S A RISKIER PORTFOLIO.
IT, YES, IT WOULD BE RISKIER, UM, BUT IF YOU LOOK OVER TIME, AT LEAST RETROSPECTIVELY, UM, THEY'VE BEEN ABLE TO MANAGE THAT RISK IN A, A VERY EFFICIENT MANNER, CERTAINLY NO GUARANTEE OF THE FUTURE.
THANK YOU, UH, BOTH FOR BEING HERE THIS EVENING.
UM, I UNDERSTAND THAT, YOU KNOW, YOU ARE OUR ADVISOR WHEN IT COMES TO ISSUING BOND DEBT PER SE, BUT, YOU KNOW, I'M KIND OF SCRATCHING MY HEAD OF WHAT IS YOUR ROLE AS IT RELATES TO CPP? SO, UM, A A, A FEW THINGS.
ONE WHERE, UM, WE'VE TRADITIONALLY I THINK BEEN UNDERWRITER RATHER THAN ADVISOR, IS A DISTINCTION IN OUR MARKET THAT IS A LEGAL DISTINCTION.
UM, ALL THAT BEING SAID, RELATIVE TO THE CPP, UM, I, I, I LEAD OUR NATIONAL PENSION PRACTICE AND I'VE HELPED, UM, WORK WITH COMMUNITIES ACROSS ARIZONA RELATIVE TO FUNDING BOTH A SRS AND P-S-P-R-S PENSION LIABILITIES GENERALLY WITH BONDS.
IN THIS INSTANCE, UH, I, I, YOU KNOW, YOU, YOU GUYS ARE, UH, IN A DIFFERENT, UH, SITUATION WHERE YOU HAVE THE CASH THAT YOU WOULD APPLY.
UM, AND SO IN CONVERSATIONS WITH YOUR TEAM, UH, YOU KNOW, THERE WAS INTEREST TO LOOK AT THIS AND, AND WE WANTED TO HELP OUT.
UH, THERE'S NO, UM, COMMERCIAL ROLE DIRECTLY RELATED TO THIS.
I, I DON'T WORK FOR THE A-S-R-S-I, YOU KNOW, RIGHT.
I, I, I'M JUST HERE, YOU KNOW, AS PART OF THE RELATIONSHIP THAT OUR, OUR FIRM HAS WITH YOUR CITY IN ORDER TO TRY TO BE HELPFUL.
APPRECIATE YOU BEING HERE AGAIN, AND I GET TO RIDE WITH MARK FOR, YOU KNOW, HOW MANY HOURS.
I REALLY DON'T HAVE ANY QUESTIONS ABOUT THE PROGRAM.
I THINK IT'S INTERESTING THAT IT PASSED AS A STATUTE, JUST KIND OF WOULD WONDER WHAT THE CONVERSATION WAS THAT LED TO IT.
BUT, YOU KNOW, I THINK IT'S A GOOD PROGRAM.
UM, OUR RATE OF RETURN WOULD BE BETTER.
MY QUESTION IS MORE ON THE, UH, SEDONA, THE PAYING FOR IT SIDE.
UM, IS THERE ANY REASON WE WOULD NOT, WE COULDN'T START IT IN FISCAL 26.
I WAS ASKING ABOUT, UM, UNENDED APP AUTHORITY THAT MIGHT BE AVAILABLE AND ACTUALLY START IT EARLIER.
I, I LOOK AT IT AS NOT INFLATING THE FISCAL 27 APPROPRIATION UNNECESSARILY.
AS, UM, AS WE'VE DISCUSSED, OUR BUDGET EXECUTION RATE IN OPERATIONS AND CAPITAL IS USUALLY 80% OR LESS.
SO WE HAVE AT THIS POINT, YOU KNOW, A FAIR AMOUNT OF FUNDS THAT WILL PROBABLY NOT BE SPENT IN THE BUDGET.
WE STILL HAVE, UM, SIGNIFICANT CONTINGENCY, UH, BUDGETED.
WE HAVE, YOU KNOW, CAPITAL PROJECTS THAT WON'T BE AS FAR ALONG AS WE ANTICIPATED, AND THEN OTHER OPERATIONAL SAVINGS.
UM, AND WE WILL ACTUALLY ON THE, THE 22ND AND 23RD TALK ABOUT THE FORECAST FOR THIS YEAR.
UM, AND I CAN TELL YOU, WE ABSOLUTELY COULD BEGIN IT.
UM, NOW, AND I KNOW THAT ONE THING THAT OMAR AND MARK SAID WAS THAT THEY DON'T RECOMMEND DOING LIKE GIANT CHUNKS, BUT SPREADING IT OUT MORE, UM, TO MITIGATE SOME MARKET RISK.
BUT THAT CERTAINLY DOESN'T MEAN THAT WE COULDN'T HAVE SOME CONTRIBUTION, UH, IN THIS FISCAL YEAR.
AND I DON'T BELIEVE WITHIN THE POLICY AND THE, AND
[02:40:01]
THE AGREEMENT WITH THE A SRS, AND PLEASE CORRECT ME IF I'M WRONG, OMAR, THAT WE HAVE A, UH, AN OBLIGATION TO PUT MONEY IN AT PARTICULAR TIMES.I THINK THAT CAN ALWAYS BE A DECISION OF COUNCIL, LIKE, WE'RE COMFORTABLE DOING THIS NOW WE FEEL LIKE WE HAVE A SURPLUS COMING UP, YOU KNOW, LET'S USE THAT.
SO IT IS, IT IS EXTREMELY FLEXIBLE.
I DIDN'T REALIZE WHEN I FIRST GOT INTO THIS, UM, WITH OMAR AND MARK QUITE HOW FLEXIBLE IT WOULD BE AND HOW MUCH OPPORTUNITY THERE WAS TO REALLY, UM, I MEAN, THESE RETURNS ARE SOMETHING WE JUST CANNOT ACHIEVE.
I JUST WANT TO ADD THAT WHEN I, I AM A RETIREE FROM AS WELL.
THE AS SR SYSTEM, WHEN I STARTED IT WAS 7% CONTRIBUTION, RIGHT?
SO IS, I, I JUST WENT LEAF BACK THROUGH THE POLICY AND I SEE SECTION FIVE ACTUALLY SETS OUT A THREE TO FIVE YEAR PERIOD.
CHARLOTTE ASKED THE QUESTION ABOUT POTENTIALLY DOING SOMETHING THIS YEAR.
WHEN IS THE TIME THAT WE ACTUALLY NEED TO LOCK DOWN THIS POLICY? IS IT NOW OR IS IT DURING THE BUDGET PROCESS? AND THEN I'M ASSUMING AT EVERY GIVING BUDGET YEAR, WE DON'T NECESSARILY HAVE TO ADHERE TO WHAT'S THERE, BUT I, YOU KNOW, I, $11 MILLION OVER THREE TO FIVE YEAR PERIOD SOUNDS MORE AGGRESSIVE THAN WE DID WITH PS PRS, ALTHOUGH THE NUMBER IS BIGGER, SO IT SHOULD PROBABLY SOUND MORE AGGRESSIVE, BUT I STILL DON'T KNOW THAT I'VE GOT ENOUGH INFO OR THOUGHT TIME TO FIGURE OUT WHETHER A THREE TO FIVE YEAR PERIOD IS CORRECT OR NOT.
UM, WE CAN ADJUST THAT PERIOD TO WHATEVER IS COMFORTABLE FOR YOU.
AND THAT'S ACTUALLY MORE OF A, I MEAN, IT'S A POLICY, RIGHT? SO IT'S SAYING THIS IS THE GUIDELINE FOR WHAT WE WANNA DO, BUT REALITY OF COURSE WOULD BE UP TO YOU ALL.
LIKE WE CAN SAY, WELL, WE'D LIKE TO DO IT IN THREE TO FIVE YEARS, AND THEN WE DISCOVER, YOU KNOW, MAYBE THIS JUST ISN'T GONNA WORK AND WE'RE GONNA DO IT OVER SEVEN TO 10 YEARS.
UM, AND I THINK WE CAN WRITE THE POLICY WITH WHATEVER TIMEFRAME WE WANT, RIGHT? YEAH.
YOU, YOU CAN WRITE THE POLICY WHAT TO WHATEVER SUITS THE CITY'S INTERNAL FINANCIAL GOALS IN TERMS OF THE BEST, UM, ECONOMICS, THE SOONER YOU GET IT DONE, THE BETTER, RIGHT? BECAUSE IT'S OTHERWISE THE, UH, THE METER'S RUNNING ON THE ON, ON THE NPL.
ALL THAT BEING SAID, EVEN IF YOU WRITE IT IN, UM, LET'S SAY THAT YOU CHOSE TO WRITE IT AS A THREE YEAR POLICY, YOU'RE UNDER ZERO OBLIGATION TO MAKE ANY OF THOSE CONTRIBUTIONS UNTIL THE, THE DAY YOU WIRE THE MONEY TO THE AS SRS.
UH, AND SO THAT'S AN AMEN, YOU KNOW, AMENDMENTS THAT YOU, YOU AND YOUR TEAM CAN MAKE ON THE FLY AS SITUATIONS PRESENT THEMSELVES.
UM, BUT IT WILL DRIVE THE STAFF ON ANY GIVEN BUDGET YEAR TO LOOK AT THE POLICY, USE THAT AS A BASELINE.
AND THAT WOULD BE IN THE INITIAL PROPOSAL.
IS THAT CORRECT? THAT WOULD, THAT WOULD PROBABLY BE WHAT WE WOULD USE AS A GUIDELINE OF STAFF IS WE WOULD SAY, OKAY, WELL HERE'S THIS POLICY.
SO WE WOULD BRING IT AS AN ITEM TO YOU TO DISCUSS FOR BUDGET.
AND I WOULD IMAGINE THAT WE WOULD CONTINUE TO DO THAT, UM, HOWEVER MANY YEARS IT WOULD TAKE TO REACH THAT, YOU KNOW, NOT FULLY FUNDED, BUT MEET THE SAME LEVEL OF INVESTMENT AS EQUALS OUR PROPORTIONATE SHARE.
AND THE POLICY ITSELF JUST REALLY SAYS, YEAH, WE WANT TO DO THIS.
AND THEN WHAT WE WOULD DO IF YOU WERE TO PROVE THE POLICY TONIGHT, WHICH YOU DO NOT HAVE TO, UM, WE WOULD THEN BRING BACK TO YOU THE AGREEMENT WITH A SRS SAYING, HEY, WE'RE GONNA DO THIS, AND YOU WOULD DECIDE HOW MUCH, AND WE COULD ABSOLUTELY DO IT THIS FISCAL YEAR IF YOU, IF YOU WANTED TO DO THAT.
MAY I ADD ONE OTHER THING, BARBARA? EVERYTHING YOU SAID IS A HUNDRED PERCENT CORRECT.
HAVING SUCH A POLICY IN PLACE, UH, TO EXTERNAL STAKEHOLDERS, BE THOSE RATING AGENCIES, POTENTIAL INVESTORS IN THE CITY, UH, OR OR OTHER SORT OF FISCAL, UH, ARBITERS ALL VIEW THESE POLICIES AS A POSITIVE, RIGHT? BECAUSE PENSION LIABILITIES ARE ONE OF THE THINGS THAT OUR DRAG ON CREDIT RATINGS, UM, BONDHOLDER RATES, ALL THOSE THINGS.
AND WHEN YOU SAY, HEY, LOOK, WE SEE THIS, WE HAVE A PLAN, UM, IT WILL, IT, IT DOES HAVE A VERY POSITIVE IMPACT FOR THE CITY.
SO HAVING A POLICY VERSUS NOT, I THINK IS A VERY POSITIVE STEP IN AND OF ITSELF.
BUT THE, AND I AGREE WITH THAT COMPLETELY AND REALLY SUPPORT THAT, BUT THERE REALLY WOULDN'T BE A MATERIAL DIFFERENCE IF THE POLICY SAID THREE TO FIVE OR IF IT SAID SEVEN, RIGHT? THE AGENCIES PROBABLY, THEY, THEY'RE MORE INTERESTED TO SEE THAT WE'VE COMMITTED TO SOMETHING THAT WE'RE MADE A STATEMENT.
I, YEAH, I THINK YOU COULD, AGAIN, YOU SHOULD ALIGN IT TO WHATEVER YOU THINK MAKES SENSE
[02:45:01]
FOR THE CITY.BARBARA, CAN YOU REMIND US OF WHEN WE'RE GOING TO BE TALKING ABOUT THE, EXCUSE ME, THE, UH, IT WAS 5 MILLION OR SO THAT IS, WE'LL HAVE TO ALLOCATE, WELL, WE COULD CHOOSE TO ALLOCATE, RIGHT? THERE'S, UM, ABOUT 5.5 MILLION THAT WAS THE SURPLUS FROM FISCAL 25 THAT'S AVAILABLE FOR ALLOCATION.
AND WE'LL BE TALKING ABOUT THAT ON THE 23RD.
KATHY, UM, THIS QUESTION GOES AGAIN TO AMENDING THE POLICY, WHICH IS A NOTICE ON PAGE SIX OF THE POLICY, WHICH IS PACKET PAGE 39, UNDER EFFECTIVE DATE.
IT SAYS THE POLICY SHALL BE EFFECTIVE IMMEDIATELY UPON APPROVAL BY THE CITY MANAGER OF THE CITY OF SEDONA, AND SHALL REMAIN IN EFFECT UNTIL THE CITY'S FUNDS AND THE BLAH, BLAH, BLAH, BLAH, GO ON.
BUT THIS CITY MANAGER'S APPROVAL, BUT WE ARE APPROVING THIS AT THIS LEVEL OF THE COUNCIL.
SO WHO, WHO WILL BE AUTHORIZED BASED ON THAT WORDING OF AMENDING THE POLICY AND WHAT PROCESS DID, WOULD AN AMENDMENT GO THROUGH THAT SHOULD PROBABLY SAY BY THE CITY COUNCIL? THAT'S WHAT I THOUGHT.
I, I DIDN'T WANNA ASSUME THAT, BUT THAT'S WHAT I DO ASSUME.
THERE YOU ARE ABSOLUTELY CORRECT.
UH, WHILE I'M AT THAT, CAN I JUST POINT OUT PLEASE THAT YOU HAVE, UM, TWO SECTION FOURS.
YOU GOT SECTION FOUR, SECTION FIVE, AND THEN SECTION FOUR, TRANSPARENCY.
SO THAT SHOULD PROBABLY BE SECTION SIX WE READ.
WANT REORDER? WHAT IS THIS? YOU DO, ABSOLUTELY.
ANY OTHER QUESTIONS? SO LET'S JUST GET A SENSE, ARE YOU READY TO MOVE TODAY? I, I'M READY TO MOVE OVER.
I THINK, I THINK WHAT I HEARD JUST FOR CLARITY IS MOVING FORWARD TODAY JUST SAYS, YES, WE'RE INTERESTED IN DOING THIS, SETTING UP THE NUMBER OF YEARS IN ANY AMOUNTS IN WHATEVER IS TO COME IN THE FUTURE.
SO THIS IS JUST TO SAY, DO WE THINK THIS IS A GOOD IDEA AND WE WANT TO MOVE FORWARD WITH THIS GOOD IDEA? AM I CORRECT IN THAT? YES.
I MEAN, WE, WE ARE ASKING THAT YOU APPROVE THE POLICY WITH THE AMENDMENTS, UM, BUT IT WOULD NOT BE COMMITTING TO AN AMOUNT OR TO A CONTRIBUTION AT ANY PARTICULAR DATE THAT WOULD COME LATER.
I'M NOT SURE WE'RE READY TO APPROVE THE NUMBER OF YEARS THOUGH, RIGHT.
BUT THE, WELL, THE POLICY INCLUDES THE YEARS.
MAYBE WE SHOULD WEIGH IN ON WHETHER WE THINK THREE TO FIVE IS A GOOD NUMBER MM-HMM
OR WHETHER YOU'D LIKE TO, 'CAUSE THAT WILL DRIVE CITY STAFF TO PUT A NUMBER IN A BUDGET EACH YEAR THAT WE CAN CHANGE.
BUT IT WILL DRIVE STAFF TO DO THAT.
WOULD IT BE MORE PALATABLE TO SAY WITHIN 10 YEARS? UM, BECAUSE THAT'S, IF WE HAVE AN $11 MILLION NET PROPORTIONAL SHARE, THAT'S JUST OVER A MILLION A YEAR.
AND THEN COUNCIL OBVIOUSLY COULD DECIDE, HEY, WE'VE GOT THIS EXTRA CHUNK OF CHANGE, WE'RE GONNA THAT THIS YEAR.
I, I THINK WE WOULD 'CAUSE THAT WAY IF THERE'S MORE SURPLUS OR CHOOSE TO ADD THAT WE DON'T HAVE TO LIMIT OURSELVES, BUT THIS WAY IT DOESN'T SET AN EXPECTATION THAT WE'RE GOING TO FUND IT IN A SHORT TIMEFRAME, WHICH WOULD MAYBE MORE THAN A SURPLUS IN A PARTICULAR YEAR.
AND WE CAN CHANGE THAT, THE CITY COUNCIL APPROVAL AND THE NUMBERING SCHEMA
AND I JUST ALSO WANNA POINT OUT, WE, WE CAN'T PREDICT ECONOMIC DOWNTURNS RIGHT NOW.
AND SO THAT MAY MAKE IT SO THAT THERE ARE SOME YEARS WE'RE NOT ABLE TO MAKE MM-HMM
AND SO GIVING US THAT LITTLE BIT OF CUSHION, ESPECIALLY RIGHT NOW, GIVEN ECONOMIC UNCERTAINTIES, HOW LONG THEY WILL LAST, HOW BAD THEY WILL BE.
RIGHT? WELL, MAYBE, YOU KNOW, 'CAUSE YOU, LIKE YOU'RE IN FINANCE, BUT, UM, I, I JUST FEELS LIKE HAVING THAT LITTLE BIT OF EXTRA TIME JUST GIVES US THAT CUSHION WHERE WE MAY NEED TO USE THOSE FUNDS TO SUPPORT THE CITY.
DEREK, UH, MAYBE I MISSED THIS, BUT IF WE SET THREE TO FIVE YEARS AND WE TAKE SIX, I MEAN, THERE'S NO PENALTY.
WE'RE JUST SETTING THE EXPECTATION.
WE'RE REALLY JUST, UM, WE'RE SETTING THE EXPECTATION MORE THAN ANYTHING.
UM, FOR HOW MUCH WILL STAFF BRING FORWARD TO YOU TO SAY, LET'S FUND THIS MUCH THIS YEAR PER OUR POLICY OF THREE TO FIVE YEARS VERSUS PER OUR POLICY OF 10 YEARS.
BUT WE'RE NOT LOCKING OURSELF INTO, WE'RE NOT LOCKING IN THE CITY IN AT ALL, REGARDLESS.
SO IS THERE A CONSENSUS ON 10 YEARS? YEAH.
SO 10 YEARS CHANGING THE NUMBERING SYSTEM AND CHANGING AND CHANGING THE AUTHORIZATION.
[02:50:03]
OKAY.DO YOU NEED A MOTION? YES, KATHY? YES.
UM, I MOVE TO ADOPT THE SEDONA, ARIZONA STATE RETIREMENT SYSTEM, A SRS FUNDING POLICY AS AMENDED.
REAL PLEASURE TALKING TO YOU ALL TONIGHT.
[9.e. AB 3313 Discussion/possible direction/action regarding proposed State legislation, short-term rental legislation, lobbying efforts, and State budget and their potential impact on the City of Sedona. ]
A 33 13 DISCUSSION POSSIBLE DIRECTION.REGARDING PROPOSED STATE LEGISLATION, SHORT-TERM RENTAL LEGISLATION, LOBBYING EFFORTS, AND STATE BUDGET, AND THEIR POTENTIAL IMPACT ON THE CITY OF SEDONA.
IS, UM, KATHY JOINING US? YEAH, WE'RE JUST WORKING.
THAT'S WHAT GOVERNMENT WILL DO.
I GUESS YOU CAN JUST BE SIDEWAYS.
UPSIDE DOWN OR SIDEWAYS? SIDEWAYS.
WHAT'S GOING ON WITH THIS? IT'S OKAY, BUT UPSIDED DOWN, BUT IT SEEMS TO BE WORKING.
UH, YEAH, YOU'RE SIDEWAYS, BUT THAT'S OKAY.
I WOULD, I WOULD LOOK LIKE I'M OKAY, BUT OKAY.
IT'S, YEAH, IT AUTO CORRECTS BACK EVERY TIME, TIME.
SHE, YOU NEED TO BLOCK THE AUTO ROTATE ON YOUR PHONE.
SO TONIGHT KATHY S AND I ARE DOING THE LEGISLATIVE UPDATE.
THANKS FOR JOINING US, KATHY, EVEN THOUGH YOU'RE SIDEWAYS
UM, SO FAR, UH, THE LEGISLATOR HAS PASSED.
THE LEGISLATURE HAS PASSED 105 BILLS, 31
[02:55:01]
OF WHICH WERE SIGNED BY THE GOVERNOR OF 22, OF WHICH WERE VETOED.UM, THE BILLS THAT WE HAVE TONIGHT ARE THE ONLY ONES LEFT THAT HAVEN'T DIED.
UH, SO THE HIGHLIGHTED ARE THE BILLS THAT ARE STILL ALIVE AND WELL.
AND MOVING THROUGH, UM, KATHY SENSEMAN, WOULD YOU LIKE TO GIVE AN UPDATE ON THOSE FOR THE COUNCIL STARTING WITH 2118? ABSOLUTELY.
AND, AND JUST REALLY QUICK, UM, TO LEVEL SET, UM, THE GOVERNOR ISSUED A MORATORIUM, UH, BILL MORATORIUM, MEANING THAT SHE'S GOING TO VETO ANY BILLS THAT ARE SENT TO HER.
AND THIS IS, UM, SOMETHING THAT TIP THAT GOVERNORS REPUBLICAN AND DEMOCRAT HAVE DONE OVER THE YEARS WHEN BUDGET NEGOTIATIONS BREAK DOWN.
AND SO WHAT THE GOVERNOR WANTS IS BASICALLY SHE WANTS THE REPUBLICANS TO RELEASE THEIR BUDGET.
UM, THAT WILL INCLUDE A PLAN FOR FEDERAL TAX CONFORMITY THAT WILL ADDRESS THE PROP 1, 2, 3 EDUCATION FUNDING ISSUE, UM, AND FIGURE OUT THE COST SHIFT FROM, UM, FROM THE HR ONE, MEDICAID AND SNAP.
UM, AND SO, UM, JUST TO, TO ALSO KIND OF JUST SHARE BACKGROUND, THE, THE GOVERNOR IS REQUIRED BY, BY THE CONSTITUTION TO PUT FORTH A
THE LEGISLATURE HAS NO SUCH REQUIREMENT, AND HISTORICALLY, THE GOVERNOR WOULD DO HER BUDGET ON FRIDAY AFTER THEY START, AND THE LEGISLATURE WOULD DO THEIR BUDGET THAT FOLLOWING WEEK.
UM, BUT WHEN THE RECESSION HIT IN 2009, UM, THE LEGISLATURE NOT HAVING THAT MANDATE OR THAT REQUIREMENT, UM, THEY CHOSE NOT TO PUT THEIR BUDGET OUT BECAUSE IT OBVIOUSLY WAS GOING TO BE A VERY UP YEAR BUDGET.
AND SO, KIND OF SINCE ABOUT 2009, UM, IT'S ONLY BEEN THE GOVERNOR'S BUDGET THAT HAS BEEN PUT OUT.
AND SO, UM, SO THE GOVERNOR NOW IS SAYING, LIKE, LEGISLATURE, YOU KNOW, WE'RE NEGOTIATING A BUDGET, BUT YOU SHOULD PUBLICIZE WHAT YOU'RE, WHAT IS IN YOUR BUDGET.
AND, UH, AND SO THAT'S KIND OF THE, THAT'S THE, THAT'S THE RUB OF WHY THERE'S THIS BUDGET BREAK OR BUDGET BREAKDOWN.
AND SO THE GOVERNOR HAS BASICALLY SAID, GONNA SHOW YOUR BUDGET, UM, OR I'M GOING TO VETO EVERY BILL YOU SEND ME, UM, GOING FORWARD.
AND SO WHEN WE TALK ABOUT SOME OF THESE BILLS THAT ARE KIND OF LIKE RIGHT UP TO THE FINISH LINE, UM, JUST KNOW THAT THE LEGISLATURE MAY, UM, STALL OUT HERE FOR A LITTLE BIT WHILE WE'RE KIND OF UNDER THIS MORE MORATORIUM KIND OF BUDGET NEGOTIATION GOING ON.
UM, SO I'LL START WITH, UH, 2118.
THAT'S THE MOBILE FOOD VENDORS, UM, LICENSURE BILL.
UM, THAT BILL IS STILL MOVING.
IT WAS ACTUALLY ON A THIRD READ CALENDAR FOR TODAY.
UM, BUT OBVIOUSLY BECAUSE OF THE MORATORIUM, UH, THAT BILL WAS NOT TAKEN UP, IT WAS HELD AND NOT VOTED ON, BUT THAT ONE IS ANTICIPATED TO BE MOVING AT SOME POINT.
UM, THE NEXT ONE ON OUR LIST HERE IS 27 93 DEALING WITH ANNEXATIONS.
UM, THAT BILL WAS ALSO ON A SENATE COW COMMITTEE OF THE WHOLE CALENDAR TODAY.
UM, AND SO THE NEXT STEP AFTER COW IS FOR IT TO BE THIRD RED.
BUT AGAIN, THAT ONE WILL PROBABLY KIND OF JUST KIND OF GET PUT IN THE PARKING LOT, UM, FOR A SHORT TIME UNTIL THE MORATORIUM IS UP.
THEN, UM, 1167, WHICH IS DEALING WITH POSTING ON WEBSITES, UM, ON THE 14TH.
SO, UH, TODAY ACTUALLY IT WAS, UM, ON IT PASSED OUT OF HOUSE COW.
SO AGAIN, THE NEXT STEP FOR THAT WOULD BE A THIRD READ.
UM, AND SO AGAIN, THAT'LL JUST KIND OF GET SIT IN THE PARKING LOT, 1431, THE MUNICIPALITIES PLANNED COMMUNITIES.
UM, THAT ONE ALSO PASSED COW TODAY.
UM, AND SO IT'LL JUST SIT THERE AND WAIT TO BE VOTED ON.
AND THEN THE 1519 DEALING WITH THE OFF HIGHWAY VEHICLE BILL.
UM, THAT ONE, UM, I BELIEVE IT WAS HELD IN COW TODAY.
UM, WHEN I TALKED TO THE POLARIS, UM, LOBBYIST ON THIS, SHE INDICATED THAT THERE WOULD BE AN AMENDMENT COMING, UM, BUT PROBABLY NOT AN AMENDMENT THAT WE REALLY CARE ABOUT OR WOULD MAKE THE BILL BETTER FROM OUR PERSPECTIVE.
UM, IT HAD MORE TO DO WITH THE, UM, THE FUNDING IN THE BILL, UM, OF WHERE THE, WHERE THE DOLLARS ARE GOING.
SO, UM, SO NOTHING THERE THAT WOULD BE, UH, UM, I THINK OF MUCH INTEREST TO US.
UM, BUT YEAH, SO, SO ALL OF THE BILLS THAT WE'RE STILL WATCHING ARE STILL VERY MUCH ALIVE AND THE, AND I WOULD THINK OF THEM AS LIKE RIGHT UP TO THE FINISH LINE, UM, BUT NOW ARE KIND OF HAMSTRUNG BECAUSE OF THE, THE BIL MORATORIUM.
[03:00:01]
PAUSE THERE.AND ON 1519, UM, MAYOR, DO YOU WANNA TALK ABOUT THE LETTER? I AM ACTIVELY WORKING ON THAT FOR YOU.
SO WHEN WE WERE MEETING WITH THE GOVERNOR'S OFFICE PEOPLE TODAY, WE TOLD THEM THAT WE WANTED, IF IT GOT THROUGH THAT THE REMINDED THEM THAT THE GOVERNOR VETOED IT IN 2023, AND WE WOULD LIKE HER TO DO THE SAME IF IT GOT TO HER DESK.
THEY SAID THEY WOULD PASS THAT MESSAGE ALONG.
BUT WHAT DEANNA BRINLEY HAD ASKED US TO DO WAS TO SEND A, AN EMAIL BASICALLY TO THE COMMITTEE CHAIRMAN, WHO'S TIM DUNN, SENATOR TIM DUNN.
AND TIM DUNN IS THE, NOT ONLY IS THE CHAIRMAN OF THAT COMMITTEE, BUT HE'S ALSO THE CHAIRMAN OF THE STUDY COMMITTEE.
AND HER ASK WAS THAT THIS BILL BE REFERRED TO THE STUDY COMMITTEE, WHICH WAS THE SAME ASK WE BASICALLY SAID BEFORE WAS THE RATIONALIZATION FOR VETOING IT.
AND THAT'S WHAT SHE'S ASKED US TO DO.
SIMPLE TWO SENTENCES, EMAIL TO THE COMMITTEE CHAIRMAN, WE SHOULD HAVE THAT BY TOMORROW.
ARE THERE ANY OTHER INDIVIDUAL BILLS THAT YOU ALL HAVE? I JUST HAVE A QUESTION FOR KATHY SENSEMAN.
UH, UM, DID YOU SAW THE, UH, ARIZONA AGENDA ARTICLE TODAY REGARDING SELENA BLISS'S, BILL HB 2 4 2 9, UH, DID YOU HAVE ANY COMMENTS ABOUT THAT ARTICLE OR WHAT YOU THOUGHT? THE ARTICLE BASICALLY IS SAYING THAT THE BILL SLIPPED THROUGH THE COMMITTEE CHAIR'S CRACKS, NOT ANYBODY ELSE'S, BUT THEIR CRACKS.
UM, WHAT IS YOUR TAKE ON THAT
I'VE NEVER WORKED HARDER FOR A CONSENSUS BILL
UM, AND SO I, YOU KNOW, I, I WAS ON EMAILS WHERE WE ACTUALLY HAD THE AIRBNB LOBBYISTS EMAILING THE, UH, COMMITTEE ASKING FOR THE BILL TO BE HEARD WITH US.
UM, AND SO I, I HAVEN'T BEEN ABLE TO FIGURE OUT WHAT, WHAT WENT WRONG EXACTLY.
I WAS TALKING ACTUALLY WITH THE LEAGUE YESTERDAY AFTERNOON, UM, ABOUT THE ARTICLE AND ABOUT, YOU KNOW, KIND OF WHAT HAPPENED BEHIND THE SCENES.
AND, UM, YOU KNOW, HE HAD THOUGHT THAT THE TRUMP SAVAGE OF THE LEAGUE HAD TAUGHT THAT PERHAPS THE SENATE PRESIDENT HAD WANTED, UM, AN AMENDMENT AND ACTUALLY WANTED TO PUT A, LIKE A SUNSET ON THE BILL, UM, FOR FIVE YEARS.
BUT, YOU KNOW, WHEN I WAS TALKING TO TOM SAVAGE, HE SAID, BUT THAT, YOU KNOW, THAT WAS NEVER PRESENTED TO US.
AND HE GOES, AND WHY WOULD WE WANT TO PUT A MORATORIUM ON A BILL THAT WAS TALKING ABOUT LIKE, UH, YOU KNOW, SEX OFFENDER, YOU KNOW, NOTIFICATIONS AND THOSE SORT OF THINGS.
WHY WOULD WE WANNA PUT A FIVE YEAR MORATORIUM ON THAT AND STATUTE? AND SO, SO WE HAVEN'T REALLY BEEN ABLE TO GET TO THE BOTTOM OF IT OTHER THAN, UM, I THINK THAT THE, UM, THE, UH, REGULATORY AFFAIRS, UH, UH, COMMITTEE CHAIR WHO DECIDED NOT TO HEAR IT, UM, JUST DOESN'T LIKE THE ISSUE.
UM, DESPITE, YOU KNOW, KIND OF A LOT OF PEOPLE TRYING TO GET TO HER, YOU KNOW, AND THEN ONE OF THE STRATEGIES, IF SOMEONE'S NOT GONNA HEAR YOUR BILL, YOU COULD HAVE IT WITHDRAWN AND MOVE TO APPROPRIATIONS.
'CAUSE THAT HAS ONE EXTRA HEARING.
UM, THE, THE SENATE COMMITTEE, UH, CHAIRWOMAN AGREED TO ALLOW THE BILL TO BE WITHDRAWN.
UM, AND, BUT THEN THE APPROPRIATIONS CHAIRMAN, UM, WHO WAS A VERY CONSERVATIVE, UM, SENATOR AND, AND YOU SAW FROM THE ARTICLE, UM, HE MENTIONED THAT HE OWNED, PREVIOUSLY OWNED AN AIRBNB, AND SO HE JUST FAILED OR DECIDED NOT TO PUT IT ON HIS AGENDA.
AND SO, UM, SO I CAN'T FIND LIKE THE SMOKING GUN NECESSARILY WITH IT, BUT, UM, BUT WE ARE TRYING TO GET TO THE BOTTOM OF, OF WHAT HAPPENED.
UM, BUT AGAIN, I'VE NEVER WORKED HARDER ON A CONSENSUS BILL TO GET IT, YOU KNOW, TO GET IT MOVING.
AND, UM, YOU KNOW, THE, THE OTHER THING I WOULD JUST SAY IS THAT, YOU KNOW, WE WERE A LITTLE BIT LATE GETTING IT OUT OF THE HOUSE.
UM, UH, BUT AGAIN, THERE WAS STILL PLENTY OF TIME TO GET IT ON THE AGENDA.
AND ONE OF THE CHALLENGES THAT WE HAD WAS THAT IT DID NOT HAVE AN ON ITS FIRST VOTE IN THE HOUSE.
IT DID NOT HAVE A MAJORITY OF REPUBLICANS VOTING ON THE BILL.
AND SO THEY HAD THE, YOU KNOW, THE LEGISLATURES KIND OF HAD THIS UNSPOKEN RULE, NOT A REAL RULE, BUT LIKE UNSPOKEN KIND OF RULE THAT BILLS THAT DON'T HAVE A MAJORITY OF THE MAJORITY, UM, GENERALLY KIND OF FALTER IN THE SECOND CHAMBER WHEN THEY COME OUT.
AND SO THAT'S WHY THE BILL TOOK A SECOND VOTE IN THE HOUSE TO TRY TO INCREASE THE NUMBER OF REPUBLICANS
[03:05:01]
THAT WERE VOTING FOR IT.AND, UM, WE WERE ABLE, I THINK TO GARNER LIKE JUST LIKE ONE OR TWO MORE REPUBLICANS ON IT, BUT IT WAS STILL, UM, UNFORTUNATELY AN ANEMIC REPUBLICAN VOTE ON IT GOING INTO THE SENATE.
AND SO I THINK THAT THAT HAD POTENTIALLY SOME, UM, PROVIDED SOME CHALLENGES FOR IT.
SO WHO'S MORE FRUSTRATED YOU, LAUREN, OR REPRESENTATIVE BLISS
WE, WE SPENT A LOT OF TIME WORKING ON THAT BILL AND, UM, A NUMBER OF STAKEHOLDER MEETINGS AND THEN JUST THE HEAVY LIFTING TO TRY TO GET IT, YOU KNOW, TO GET THE VOTES IN THE HOUSE AND THEN TO GET THE CHAIRMAN, BOTH CHAIRMAN TO, YOU KNOW, HEAR, HEAR THE BILL.
UM, YOU KNOW, AND THERE HAD BEEN AN AGREEMENT, UM, THAT, UH, THAT WAS UNDERSTOOD WITH THE SENATE PRESIDENT THAT IF THERE WAS A CONSENSUS BILL, YOU KNOW, HE, YOU KNOW, THAT THE INDUSTRY AND EVERYONE WERE IN AGREEMENT WITH, HE WOULD NOT STAND IN THE WAY OF PUTTING IT ON THE FLOOR, YOU KNOW, FOR A VOTE.
UM, AND SO, YOU KNOW, SO WE, YOU KNOW, WE HAD SOME OF, WE HAD SOME OF THOSE THINGS IN PLACE, BUT WE JUST COULDN'T GET IT PAST THE, THE COMMITTEE CHAIRMAN, UNFORTUNATELY.
SO KATHY, THE, UM, I DON'T REMEMBER WHAT THE ORIGINAL BILL NUMBER WAS, BUT THE BILL THAT WOULD PUT A MORE ORATORIUM ON UTIL RAISING UTILITY FEES IS NOW A REFERRAL HCR 2016.
SO I GUESS IT ADDS TO THE LIST OF 30 PLUS REFERRALS THAT HAVE TO BE NARROWED DOWN.
AND WHAT WE CAN ANTICIPATE ON ALL OF THOSE REFERRALS THAT ARE OUT THERE IS THAT THEY WILL, TYPICALLY, WHAT THEY DO WITH THE REFERRALS IS THEY KIND OF WAIT UNTIL THE FINAL DAYS OF THE LEGISLATIVE SESSION TO DETERMINE WHICH BILLS ARE GOING TO BE PUT FORWARD.
UM, AND, AND SO WE WILL, YOU KNOW, WE'LL JUST KIND OF, IT'S GONNA BE A WAIT AND SEE UNTIL, LIKE THE FINAL DAYS OF THE LEGISLATIVE SESSION.
UM, I HAVE HEARD, LIKE THE SENATE PRESIDENT HAS INDICATED THAT HE THINKS THAT THEY WILL REFER, UM, ANYWHERE BETWEEN AROUND SIX TO EIGHT, UM, BALLOT REFERRALS THIS YEAR.
AND SO IF YOU REMEMBER LAST YEAR THERE WERE THREE, UM, LEGISLATIVE BALLOT REFERRALS.
AND SO, YOU KNOW, WE COULD BE CLOSE TO A DOZEN LEGISLATIVE REFERRALS ON THE NOVEMBER BALLOT.
UM, BUT AGAIN, THAT WILL BE KIND OF A WAIT AND SEE AS THE SESSION PROGRESSES, BUT WE MIGHT NOT KNOW THAT UNTIL, YOU KNOW, WELL INTO JUNE.
WHAT WAS THE REACTION TO THE GOVERNOR'S MORATORIUM BY THE LEGISLATORS? I, I THINK THE CRUSTY OLD GUYS ARE LIKE, WELL, YOU KNOW, WE KNEW IT WAS COMING
UM, AND SO I KNOW THE, YOU KNOW, THE LEGISLATURE WAS TRYING TO PUSH OUT A LOT OF BILLS.
UM, AND SO, UH, SO YOU KNOW, IT WAS KIND OF ONE OF THOSE WHERE I THINK A LOT OF PEOPLE, AT LEAST THAT MY CIRCLES KIND OF THOUGHT IT WAS INEVITABLE BASED ON HOW THE BUDGET NEGOTIATIONS WERE GOING.
UM, SO, YOU KNOW, IT HASN'T BEEN SOMETHING THAT THE GOVERNOR HAS DONE TO, WELL, I THINK THE LAST TIME SHE DID IT WAS, I THINK LAST, LAST YEAR, AND SHE ONLY ENACTED IT FOR AROUND A WEEK UNTIL THEY, UH, CAME TOGETHER ON THE DEVELOPMENTAL DISABILITY FUNDING.
THIS ONE I THINK IS GOING TO STICK AROUND LONGER, UM, SIMPLY BECAUSE I THINK THE, KIND OF THE CHASM OF, OF WHAT HAVE TO OVERCOME FOR THE BUDGET, BECAUSE WE DO HAVE A DEFICIT, UM, AND OVER A BILLION DOLLAR DEFICIT.
AND, UM, THERE'S JUST A FUNDAMENTAL DISAGREEMENT BETWEEN REPUBLICANS AND DEMOCRATS ON BASICALLY EVEN HOW TO BUILD THE BUDGET.
UM, AS AN EXAMPLE OF THIS WOULD BE, UM, AN HR ONE, THERE WAS AN OPPORTUNITY FOR STATES TO SEEK REIMBURSEMENT FROM THE FEDERAL GOVERNMENT ON, UH, BORDER SECURITY.
AND SO THE STATE, I THINK PUT IN FOR 750 OR $760 MILLION FOR REIMBURSEMENT FOR, FOR THOSE EFFORTS.
UM, WHAT, UH, REPUBLICANS HAVE SAID, OR LEADERS THAT REPUBLICANS HAVE SAID IS THAT THEY'VE BEEN INDICATIONS FROM THE, YOU KNOW, FROM THE, FROM THE WHITE HOUSE, THAT THEY ARE NOT GOING TO FULFILL THOSE REQUESTS, UM, IN KIND OF DEMOCRATIC RUN STATES.
SO THE LEADERSHIP HAS SAID, YOU KNOW, LIKE, GOVERNOR, YOU CAN'T BUILD YOUR BUDGET ON BELIEVING YOU'RE GOING TO RECEIVE A $750 MILLION.
UM, AND SO, YOU KNOW, BUILD IT WITHOUT THAT IN IT, AND THE GOVERNOR'S POSITION IS, WELL, WE REQUESTED IT, IT'S AN HR ONE, WE SHOULD, WE SHOULD RECEIVE IT.
UM, AND SO THERE'S JUST SOME OF THOSE FUNDAMENTAL
[03:10:01]
DISCONNECTS.AND, YOU KNOW, I THINK THE OTHER BIGGER, THE BIGGER ONE, NOT BIGGER, BUT ONE OF THE BIGGER ONES IS, UM, THE PROP 1, 2, 3, WHICH IS THE EDUCATION FUNDING OF REAUTHORIZING THAT, UM, BECAUSE RIGHT NOW THE GENERAL FUND IS BACKFILLING $300 MILLION TO EDUCATION, UM, FROM THAT PROP 1, 2, 3 EXPIRING.
AND FROM WHAT I UNDERSTAND, THE POLITICS AROUND THAT IS THAT, UH, REPUBLICANS ARE UPSET, UM, WITH THE, UM, CITIZEN INITIATIVE REFERRAL TO DO ESA REFORMS. UM, AND SO, UH, WHEN I TALKED TO SOME FOLKS, THEY, THEY THOUGHT THAT IT GALVANIZED THE REPUBLICANS, UH, LEGISLATIVE REPUBLICANS TO NOT WANT TO DO ANYTHING ON THAT TOPIC.
SO IF YOU JUST TAKE THOSE TWO ITEMS, THAT'S ROUGHLY A BILLION DOLLARS OF MONEY THAT THEY CAN'T FIND AGREEMENT ON WHAT TO, YOU KNOW, THAT, THAT IT CREATES, IT DOESN'T HELP WITH THE BUDGET DEFICIT.
UM, AND SO I, YOU KNOW, WE WILL SEE WHERE THEY END UP ON THAT, BUT I'M ASSUMING THAT WE'RE PROBABLY GONNA SEE SOME OSTE MEASURES OR INFRASTRUCTURE PROJECTS BEING, UM, PUSHED OFF TO FUTURE BUDGET YEARS TO TRY TO COVER THAT GAP IN THE BUDGET.
ANY OTHER QUESTIONS FOR KATHY? OKAY.
LONG LAST, BUT YOU'VE BEEN WAITING FOR ALL NIGHT
[9.f. AB 3066 Discussion/possible action regarding future meeting/agenda items.]
DISCUSSION POSSIBLE ACTION REGARDING FUTURE MEETING AGENDA ITEMS. DOES ANYONE HAVE ANYTHING? OKAY.AND THIS IS WHAT YOU'VE BEEN WAITING FOR.
[11.ADJOURNMENT ]
AT 1:00 PM.