City Council

Lake Havasu City Mayor Mark S. Nexsen Vice Mayor Don Callahan Lake Havasu City Police Facility Councilmember Crystal Alger 2360 McCulloch Blvd North Councilmember David McAtlin Regular Meeting Minutes - Final Lake Havasu City, Arizona 86403 www.lhcaz.gov Councilmember Dean Barlow Councilmember Donna Brister Councilmember Jeni Coke City Council Tuesday, June 24, 2014 6:00 PM Regular Meeting 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Jim Bethoney, Living Word Pastor Jim Bethoney, Living Word Family Church, gave the invocation. 3. PLEDGE OF ALLEGIANCE The mayor led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Mark S. Nexsen, Councilmember Dean Barlow, Councilmember Crystal Alger, Councilmember Donna Brister, Vice Mayor Don Callahan, Councilmember Jeni Coke and Councilmember David McAtlin 5. CALL TO THE PUBLIC Mr. Jerry Czarnowski addressed the Council and stated he has been concerned about the City ever since it was incorporated. He read a letter he had written to the News Herald expressing concern with the elimination of the Havasu Area Transit, the Wayfinding Program, and the slogan “Play Like You Mean It.” He said he would like to hear some response from members of the Council regarding those issues. Mayor Nexsen explained during the Call to the Public, Council is not allowed to have a discussion because those items are not agendized. He said Mr. Czarnowski was welcome to call any one of the Councilmembers regarding his concerns. Mayor Nexsen clarified for the record that the Transit service has not been eliminated. 6. CONSENT AGENDA Lake Havasu City Page 1 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final 6.1 ID 14-0320 Approval of June 10, 2014, City Council Regular Meeting Minutes 6.2 ID 14-0321 Adopt Resolution No. 14-2836 Abandoning the Western 5-foot by 115-foot Portion of the 10-foot by 125-foot Public Utility and Drainage Easement Along the Eastern Property Line of Lot 8, of Tract 2204, Block 2 / APL Surveying 6.3 ID 14-0323 Adopt Resolution No. 14-2834 Approving IGA with Mohave County Regarding the "Mohave County Housing Authority" 6.4 ID 14-0330 Adopt Resolution No. 14-2837 Approving Federal Aviation Administration Non-Federal Reimbursable Agreement for Flight Inspection of Airport Precision Approach Path Indicator 6.5 ID 14-0327 Adopt Resolution No. 14-2839 Approving Amendment No. 2 to the Airport Development Reimbursable Grant Agreement with ADOT for Construction of Airport Precision Approach Path Indicator (PAPI) for Runway 14 6.6 ID 14-0318 Call for Executive Session Pursuant to A.R.S. 38-431.03(A) 5:00 p.m. Tuesday, July 8, 2014 Councilmember McAtlin moved to approve the Consent Agenda as presented, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 14-0335 Legislative Update by Brian Tassinari of Willetta Partners Mr. Brian Tassinari stated he was before the Council to give a brief outline of the scope of what they had done on behalf of Lake Havasu City for this legislative session. He also stated he would like to give some thoughts on what the City should be doing in the interim and next year. Mr. Tassinari stated the Transaction Privilege Tax (TPT), that was drafted was a disaster and a lot of people worked really hard on changing that including Mayor Nexsen. He said in his judgment the final product that came out was pretty good although it could have been better. He stated with regard to bills and issues they worked on this year the most important from a fiscal point of view would be a partial restoration of the Highway User Revenue Fund (HURF) monies. He said Lake Havasu City Page 2 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final initially the proposal was to restore $120 million but ended up at $30 million. He said it was not a huge victory but a step in the right direction. He said State Representative Sonny Borrelli passed a bill that allows law enforcement to have more tools to go after people who operate a boat while inebriated and do not choose to take a breath test. Mr. Tassinari stated another big issue for Lake Havasu City and the Colorado River is sweep of the State Lake Improvement Funds (SLIF) which is money that has been used to build many of the improvements that the City has along the Colorado River. He said they had some very positive feedback from leadership in the House, Senate, and the Governor’s office towards getting that money restored but could not because they ran out of money. Mr. Tassinari stated lastly, they intervened a little on the continuation of the Water Infrastructure Finance Authority (WIFA) because they are difficult partners for the City. He said they sent a message to them that the Senate President, Chair of the Corporation Commission, and others have taken interest in wanting to help the City try to renegotiate with WIFA. He said it was never their intention to not have WIFA reauthorized but is something they got involved with on behalf of the City. He stated he thought it was a positive effect. Mr. Tassinari stated with regard to the interim and moving forward, he recommended that SLIF is the most important thing the City should be working on. He encouraged Council to meet with candidates running for governor and ask them, if they were to get elected, would they restore the SLIF monies. He said his second recommendation pertains to Improvement Districts. He said there was a real good idea that was developed by the League of Arizona Cities and Towns to take the existing statue on Improvement Districts and remove the slum and blighted designation from it. He stated it was not as powerful a tool as the Revenue Allocation District but felt it was doable. Mayor Nexsen stated when it comes to the Improvement Districts and the slum and blighted, he is the Chair of the League Subcommittee on Resolutions and said it has been brought again for the League to help with. He added they also have the Revenue Allocation District and are hoping with that, they can push to get something done. 7.2 ID 14-0319 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions City Clerk Kelly Williams announced the current vacancies for various Lake Havasu City Boards, Committees, and Commissions. 7.3 ID 14-0317 City Manager’s Report City Manager Charlie Cassens reported on the following:  Code Enforcement staff has received 48 new complaints, performed 46 initial complaint inspections, 41 re-inspections, sent 7 violation notices, and closed 31 cases. There are currently 61 Lake Havasu City Page 3 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final active and open cases. He read a letter into the record received from Paul and Joan Carpenter thanking Code Enforcement for the clean-up that was done on North Palo Verde Boulevard. He complimented Luke Morris for doing an excellent job with Code Enforcement.  Last Friday, over 200 kids attended the grand opening of the Aquatic Center’s newly renovated spray park, “Shipwreck Island.” The Operations Department Maintenance Services crews and Community Services employees worked collaboratively to remove and restore the old spray park as it was becoming unsafe to use due to deterioration of the concrete. The project remained in-house and crews went above and beyond re-constructing the park and keeping it under budget. He thanked both departments for their efforts and talents in making this project a success and also thanked Administrative Technician Sarah Ross for the photos and Nic Cooke for putting together the video production.  The Operations Department Maintenance Services crews are working on installing the lights by the high school for the intersection signalization. When the pedestrian button is pushed, the lights will all cycle to red to allow a 42 second pedestrian crossing. He thanked the following staff for an outstanding job: Ken Porosky, Maintenance Supervisor; Terry Brown, Engineering Technician Coordinator; Loren Schipper, Engineering Technician Coordinator; Chris Rickard, Engineering Technician Coordinator; Danny Blaeser, Engineering Technician; John Wolter, Maintenance Lead; Mark Partida, Maintenance Specialist; Jeff Marra, Maintenance Technician; and Dan Castle, Maintenance Specialist.  Tri City Councils and staff from Kingman, Bullhead City and Lake Havasu City met for a Tri-City Council Strategic Planning Session to revisit the mission statement and discuss the future of the organization. The Councils chose to simplify the mission statement without changing the organizations ultimate reason for being. Their mission is to provide a unified voice for the governing bodies of Bullhead City, Kingman, and Lake Havasu City to discuss and take action leading to regional cooperation that improves the economy and quality of life for our citizens. The Tri-City Council represents 60 percent of Mohave County’s population and with one voice we have more of an impact and representation at the local, state, and federal level on issues that affect our area.  The Police Department was recently awarded a $20,000 grant from the Governor’s Office of Highway Safety to be used for conducting DUI and traffic enforcement operations. An additional $10,000 in monies was awarded for the purchase of radar equipment. This grant provides the Police Department the ability to increase DUI enforcement capabilities by assigning personnel on overtime and to concentrate on DUI and traffic enforcement activities in an effort to remove or deter impaired drivers from the roads. The program began on Friday, May 16, 2014, and will extend through September 30, 2014. During the first phase of the assigned enforcement detail, officers made 170 motorist contacts, investigated and made 14 arrests for DUI related crimes, and issued 80 traffic citations. 8. PUBLIC HEARINGS 8.1 ID 14-0322 Adopt Resolution No. 14-2832 Appointing Members to the Home of the Lake Havasu City Page 4 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final London Bridge Advisory Committee City Clerk Kelly Williams stated that staff received two applications requesting consideration for appointment to the Home of the London Bridge Advisory Committee. Mr. Peter Noval addressed the Council and stated he wanted to join the committee because the London Bridge is a huge part of this town and he would like to be part of grooming the two slogans “Home of the London Bridge” and “Play Like You Mean It” together. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to adopt Resolution No. 14-2832 appointing Mr. George R. Link and Mr. Peter Noval to the Home of the London Bridge Advisory Committee, seconded by Councilmember Callahan, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.2 ID 14-0324 Adopt Resolution No. 14-2833 Appointing Member(s) to the Planning & Zoning Commission Ms. Williams stated that staff received one application requesting consideration for appointment as a regular member to the Planning & Zoning Commission. She said this appointment is needed to fill one regular member vacancy that expires July 1, 2014. Mr. Chad Nelson addressed the Council and said his motivation for serving the community on the Planning & Zoning Commission is to assist the community and the City in the dynamic of real property changes. He said he believed there will be many important changes to come before the Commission in the next few years and is excited to be a part of those meetings and changes. He said he believed he has the background to understand the individual need of the applicant while maintaining the ideals and beautification of our City. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to adopt Resolution No. 14-2833 appointing Chad M. Nelson as a regular member to the Planning & Zoning Commission for a term ending July 1, 2016, seconded by Councilmember Brister, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Lake Havasu City Page 5 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final 8.3 ID 14-0329 Adopt Resolution No. 14-2835 Appointing Member(s) to the Parks & Recreation Advisory Board Ms. Williams stated that the City Clerk’s office received one application requesting reappointment as a teen member to the Parks & Recreation Advisory Board for a term ending June 30, 2016. She advised that Ms. Alexis Cooke was unable to attend the meeting. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow said he has served on the Parks & Recreation Advisory Board with Ms. Cooke and said she has always been a very dedicated member of the Board. Councilmember Brister moved to adopt Resolution No. 14-2835 appointing teen member Alexis Cooke to the Parks & Recreation Advisory Board for a term ending June 30, 2016, seconded by Councilmember Alger, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.4 ID 14-0304 Adopt Resolution No. 14-2829 Appointing Members to the Airport Advisory Board Ms. Williams stated that the City Clerk’s office received two applications requesting reappointment as regular member pilots to the Airport Advisory Board for a term ending June 30, 2017. She advised that Mr. Balis Kelly was unable to attend the meeting. Mr. George Molitor addressed the Council and stated he has served two terms on the Board, and added, two years of his term he served as chairperson and the past two years he has served as vice-chairman. He stated he applied for a third term because he still has something to offer the Board and the community to help the airport be a better asset to this community. Councilmember Alger stated she has served on the Board for the past year and a half and it would be a disservice not to reappoint these two gentlemen to serve again. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to adopt Resolution 14-2829 appointing Balis Kelley and George Molitor as regular pilot members to the Airport Advisory Board for a term beginning July 1, 2014, and ending June 30, 2017, seconded by Councilmember Barlow, and carried by the following vote: Lake Havasu City Page 6 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.5 ID 14-0290 Adopt Resolution No. 14-2826 Approving Support Services Agreement with the Lake Havasu Metropolitan Planning Organization City Attorney Kelly Garry stated this item is to consider an agreement with the Lake Havasu Metropolitan Planning Organization. She said the services include human resources, employment, financial accounting, procurement, information technology, and other support services. She added these services would be tracked and then applied as an in-kind match for grant funds. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to adopt Resolution No. 14-2826 approving the Support Services Agreement with the Lake Havasu Metropolitan Organization, seconded by Councilmember McAtlin, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.6 ID 14-0309 Approve City Manager Employment Contract with Clarence L. "Charlie" Cassens Ms. Garry said as directed, staff drafted an employment agreement for Mr. Cassens for a two year term at the same annual salary of $154,875. She added there were no significant changes to the agreement but said some insurance requirements regarding the airplane had been added that had been retained in the past but not outlined in the agreement. Councilmember Alger wondered if his salary had or had not been increased by 5 percent, to which Ms. Garry explained that his salary had not been increased and was the same salary that he was making in the previous fiscal year. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing Councilmember McAtlin moved to approve the City Manager Employment Contract with Clarence L. “Charlie” Cassens, seconded by Councilmember Coke, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember Barlow, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Nay: 1 - Councilmember Alger Lake Havasu City Page 7 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final 8.7 ID 14-0310 Approve City Attorney Employment Contract with Kelly C. Garry Mayor Nexsen stated the employment agreement with Ms. Garry was pretty much the same as before with an increase in salary to $142,000. He added that there were only minor changes to the contract. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to approve the City Attorney Employment Contract with Kelly C. Garry, seconded by Councilmember Alger, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.8 ID 14-0332 Approve Addendum No. 1 to the Employment Agreement with Mitchell Kalauli to Serve as Presiding Magistrate Ms. Garry said as directed by Council at the last meeting and upon the satisfactory evaluation of the City Magistrate, an addendum was made to the employment agreement to increase his compensation to $120,000 annually and the contract was increased by one month to align with the budgetary cycle. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to approve Addendum No. 1 to Employment Agreement between Lake Havasu City and Mitchell Kalauli to Serve as Presiding Magistrate of the Lake Havasu City Municipal Court, seconded by Councilmember Alger, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.9 ID 14-0339 Adjourn to Special Meeting Mayor Nexsen stated that by Arizona Law, the Council has to adjourn to a Special Meeting to adopt the budget. Councilmember Callahan moved to adjourn to a Special Meeting, seconded by Councilmember Alger, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Lake Havasu City Page 8 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final 8.10 ID 14-0338 Adopt Resolution No. 14-2840 Adopting the Fiscal Year 2014-15 Final Budget Administrative Services Director Valerie Fenske stated the item before Council is to adopt the FY 2014/15 final budget. She said this is the second year of the City’s first biennial budget and during that process of year one for FY 2013/14 that budget was adopted and the second year was approved. She stated what is before Council is what had been discussed at the previous work session and the tentative budget adoption hearing for a final budget for FY 2014/15 of $149,165,287. Councilmember Barlow asked for additional information regarding how the primary property tax rate is set, to which Ms. Fenske explained to prepare the property tax levy staff uses a work sheet provided by the Property Tax Oversight Commission and as a starting point staff receives the assessed valuations from the County. She stated several years ago the City decided to hold the levy and take additional new construction. She said when staff does that calculation there are three components; the assessed value, the tax rate itself, and the dollar levy. She stated when you take the assessed valuation and new construction which is set by the County and hold the levy, intending to take advantage of new construction, which causes the tax rate itself to float and adjust to that particular levy. She said staff was proposing to set the primary property tax levy for FY 2014/15 at .7408 percent which is a .37 percent increase over the prior year rate. Mayor Nexsen explained that a few years ago when the recession hit and home values were declining, the Council decided instead of letting the rate float up to adjust and try to collect the same amount to freeze it and collect $800,000 less so the City collected roughly 4.9 percent and then dropped it to 4.1 percent. He said the Council made a policy that thereafter the only thing the City would collect was what was collected that previous year plus the impact of new construction. He said what is going to happen in future years as those assessed home values start going up, if the same policy set by Council is followed other than new construction, the property tax rate would go down. He said if the Council would hold the flat rate, when assessed values go up, taxes would go up and if the assessed value would go down, there would be a lower property tax. Mayor Nexsen opened the public hearing. Mr. Clarence Sherman Dwyer addressed the Council and said two things concerned him: funding for the infrastructure for State Parks and the procurement of more land for another park. The following people spoke in favor of the Wayfinding program: Mr. Bob McClury Mr. Artie Collins Mr. Rich Meyers Mr. Dante Marinelli Lake Havasu City Page 9 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Mr. Chad Nelson Mr. Doug Traub, President/CEO of the Convention and Visitors Bureau, thanked the Council for including Wayfinding in the budget this year. He added that the business community and those who understand the Wayfinding program appreciate it, and said he would be working with Mr. Cassens and staff to make sure everybody understands the benefits of Wayfinding. There being no further comments, Mayor Nexsen closed the public hearing. Mayor Nexsen stated he appreciated all of the citizens being present and voicing their opinions. He said the City builds parks for our citizens and not our tourists. He said the City builds them, expands them, and makes them better for the citizens because parks are absolutely important to the quality of life for Lake Havasu City. Mayor Nexsen said the City has been working to keep the budgets low to deal with the economic recession and are now prepared to break out. He said other cities in Arizona are looking how they can cut their budget but Lake Havasu City does not have to do that because we recognized it early, dealt with it, and have seen retail sales go. He added we do have roads to improve, parks to improve, and have to deal with transit. He said he understands exactly what the community is saying about Wayfinding but stated one of his core values is if the City is going to make an investment, he would like to see a return on that investment. He said he does not deny Wayfinding will bring in business but stated the taxpayers will have to fund at least $600,000 and for the City to repay the taxpayer there would have to be $30 million of taxable sales activity primarily in the hospitality industry. He said if the City does go forward with Wayfinding, we may need to look at it and say how do we make this work, or do we need to scale it down. He stated one thing he is hearing is a lot of is people saying they do not like Wayfinding but we need a sign to the London Bridge, or they do not like Wayfinding but we need signs to the beaches, to the parks, and ASU. He said this may just be a matter of figuring out where some of the more visible signs would be appropriate that our tourists use. Councilmember Alger stated rate of return can be looked at in many different ways. She said that it is an invaluable expense that we are going to give to our community to not only generate taxable dollars, but we would be adding to our community’s different interests people would have never known and might make that choice to move here because they love the community but they did not realize our community has so much to offer. She stated she disagreed with the taxable income as we do have the Aquatic Center and Parks that do not bring in any money. She added that the City needs Wayfinding and feels that it is a very important aspect to our community and it is only going to hinder us from developing our community if we do not move forward. Mayor Nexsen stated Wayfinding signs would add beautification to our highways and agree that there is a quality of life aspect to it as well. Lake Havasu City Page 10 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Councilmember Barlow stated one of the things they have not talked about are the other organization in town that have bought into this process, made donations or will be making donations. He asked if ASU was one of them, to which Mayor Nexsen stated he thought their contribution was $24,000. Mayor Nexsen stated one of the things he wanted to talk about was Transit. He stated Transit has not gone away but the one thing that has changed is the nature of it - to serve the most vulnerable people in our community. He stated what Council has decided to do is a curb to curb service that allows seniors and those with disabilities to do food and medical runs Monday through Thursday 8 a.m. to 2 p.m. He added there will also be a voucher system through Interagency and contracting with local shuttles, and added that staff found out last week that because it is now a City curb-to-curb service and not a fixed route, the City does not have to utilize a shuttle system the same hours as the curb-to-curb service. He added that the City could let those people use shuttles with the $5 voucher, as long as they income qualify, any hour of the day and to go anywhere they please. He said that would help considerably. He stated that system will still run $350,000 to $500,000 a year and right now, there is only $350,000 in the budget. He said with the expanded voucher system, if we are not going to add another $100,000 and take it from somewhere else in the budget, when those vouchers run out we are going to have to take it from contingency. He added he would vote yes to take it out of contingency and said personally, he would like to see it added to this year’s budget but the $150,000 would have to be taken from somewhere else in the budget. Councilmember Alger stated she agreed with Mayor Nexsen and added that if the voucher system is expanded to all riders the City is going to run out of funds really fast and there needs to be a backup plan. Councilmember Callahan stated he was not sure if the Council should not be reallocating some of the Wayfinding money this year to the Transit program. He added he was still in favor of Wayfinding being done to let the public see how attractive and what a great asset it will be to the City. He added it may be more expensive but thought that could solve both problems by reallocating some of that Wayfinding money to the transportation budget. Mayor Nexsen said the hard part about Wayfinding is trying to figure out the fiscal impact on stays because but it is difficult to come up with those numbers. He said he looks at things like adding parks as pure quality of life; you build them because you want your city to be a better city. Councilmember Barlow said bottom line is either Council buys into the Wayfinding program or not. He said he would be in favor of keeping it like it is, funding the whole amount, and then figuring something out for transit if needed down the road. Lake Havasu City Page 11 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Councilmembers Brister and McAtlin agreed with Councilmember Barlow. Councilmember Alger agreed. She added that the Council does not know how tight Interagency will be with their qualifications or the Council may find that nobody uses the transit funds. She added that going into contingency funds is not really a good idea but it is not going to be as detrimental to fund as if the washes were flooding and felt it would be something the City could recover from. She thought Council needs to go all or nothing with Wayfinding. Councilmember Coke asked Mr. Traub if there may be others interested in buying into the program or any other opportunities on the horizon that might offset some costs down the road, to which Mr. Traub stated that the Mayor’s recollection of the project cost of $600,000 was correct, but approximately $90,000 of that cost is being provided by private dollars so the sales tax to recover the City’s contribution for the project would be approximately $25 million. He added that when you look at sales tax and the reason it is up, is because hotel revenues are up 17 percent and that is because more people are coming into town due to advertising. Mayor Nexsen said he wanted to point out that transit issues are not unique to Lake Havasu City, as Sierra Vista also went over the 50,000 mark in population and they are struggling because for every dollar in fares, it costs the city $332 to provide the ride. Councilmember Alger moved to adopt Resolution No. 14-2840 adopting the Fiscal Year 2014-15 Final Budget in the amount of $149,165,287, seconded by Councilmember McAtlin, and carried by the following vote: Aye: 6 - Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Nay: 1 - Mayor Nexsen 8.11 ID 14-0340 Reconvene to Regular Meeting Councilmember Alger moved to reconvene from Special Meeting to Regular Meeting, seconded by Councilmember Callahan, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.12 ID 14-0334 Approve Memorandum Of Understanding with the Lake Havasu Police Officers Association. Police Chief Dan Doyle advised that the item before the Council is the Memorandum of Understanding with the Police Officers Association. He said there are some minor changes in Lake Havasu City Page 12 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final formatting and language but no substantial changes. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to approve the Memorandum of Understanding with the Lake Havasu Police Officers Association for a term of July 1, 2014, to June 30, 2015, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.13 ID 14-0292 Approve Animal Care and Shelter Services Contract with the Western Arizona Humane Society Chief Doyle stated that the item before the Council is the contact with the Western Arizona Humane Society. He said one change is that the contract is $55,000 less than last year and the other change is to allow them to start collecting impound and boarding fees that the City charges; however, the money would still come back to the City. He said there was also additional language in the contract where they would work with staff to develop a software package for continuity in the processing of animals. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to approve and authorize the City Manager to execute the Animal Care and Shelter Services Contract with the Western Arizona Humane Society from July1, 2014, through June 30, 2015, in an amount not to exceed $250,000, seconded by Councilmember Brister, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.14 ID 14-0247 Approve HAVEN Family Resource Center FY 2014/15 Contract for Services Chief Doyle advised that this item is to approve the HAVEN contract for service for FY 2014/15 in the amount of $73,274. He added that HAVEN is the center that provides services for victims of sexual assault. He said other than the slight increase in funding, there were no other changes to the contract. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McAtlin moved to approve the FY 2014/15 Contract for Services Lake Havasu City Page 13 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final with HAVEN Family Resource Center, Inc., for $73,274.00 and authorize the City Manager to execute the Contract on behalf of the City, seconded by Councilmember Alger, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.15 ID 14-0313 Award Arizona Government Relations Consultant/Lobbyist Contract to Willetta Partners Mr. Cassens stated that before the Council was a communication requesting approval of another year contract with Brian Tassinari of Willetta Partners to represent the City at the State. He said Mr. Tassinari has done a great job for the City and through the bid process was also the lowest bid. Mayor Nexsen stated Mr. Tassinari went to Lake Havasu High School and his parents also live here. He said one of the things he really enjoys is that he can call Mr. Tassinari anytime day or night and can get an answer. He added he thought Mr. Tassinari has clearly earned his contract amount in the past year. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to award the Arizona Government Relations Consultant/Lobbyist contract to Willetta Partners in an amount not to exceed $60,000, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.16 ID 14-0325 Approve Addendum No. 3 to D2 Aero Airport Lease Agreement to Allow Part 135 Uses Airport Supervisor Steve Johnston advised that D2 Aero has requested an addendum on their Site 4 Lease to allow Part 135 uses as a permitted use. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Brister moved to approve Addendum No. 3 to the Airport Lease Agreement dated October 28, 2008, with D2 Aero, LLC, and authorize and direct the City Manager to execute the Addendum on behalf of the City, seconded by Councilmember Callahan, and carried by the following vote: Lake Havasu City Page 14 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.17 ID 14-0314 Approve Amendment No. 1 to Design/Build Agreement for Island Plant Tertiary Filter Reconstruction with Hunter Contracting Company (SS2920) Project Manager Jeremy Abbott stated this was an amendment for the design/build contract for the tertiary filter. He reviewed the original contract for Council and added the original approved budget for this project was $675,000 and with this amendment of $45,000 staff is still under budget on this project by approximately $80,000. He said the reason for the amendment is because during the design process of trying to retro fit the new filter with the existing sand filter the structure itself was too large to simply drop in which would require a lot of structural improvements in raising the walls up to allow enough hydraulic cover for the filters to operate properly. He added what staff also found out was it would put them over budget. Mr. Abbott stated staff found a package type filter that allows a large reduction in the overall construction costs and the existing tertiary sand filter would still remain and could be used in the future. He said the filter alone costs $277,000 but the main portion of the amendment covers the cost of a shade structure and some electrical costs that were underestimated originally. He added the need for the shade structure would help protect the equipment and also reduce algae growth on the filters. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to approve Amendment No. 1 to the Design/Build Services Agreement for the Island Plant Tertiary Filter Reconstruction, Project No. SS2920, with Hunter Contracting Company, from $550,000 to an amount not to exceed $595,587.52, and authorize the City Manager to execute the Amendment, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.18 ID 14-0316 Award Bid for Janitorial Services for Various Facilities on a Requirements Basis to WCD Enterprises Maintenance Services Division Manager Mark Clark stated this was for the annual janitorial services for most of the City facilities. He added there were two bidders and background checks were conducted. Mayor Nexsen opened the public hearing. Lake Havasu City Page 15 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Ms. Renee Vicker, owner of Done Right Cleaning Resources, stated that they have the current contract with the facilities in Lake Havasu City and that contract expires June 30th. She said she followed the proper procedure for submitting the bid and on May 1st she appeared for the bid opening and her bid was read. She stated the following Monday, she had received an e-mail from Kim Fiumara stating that they were going to re-open the bid to the other bidder because there was another bid that came in. She added they are a local company that employs many in Lake Havasu City. Mayor Nexsen said his understanding from the materials provided is that the other bidder’s bid was misplaced. Contract/Procurement Supervisor Kim Fiumara explained that the other bidder was WCD Enterprises, LLC of Scottsdale, Arizona and was signed for by the Community Services Department counter at 8:15 a.m. on May 1st, the day of the bid opening. She said the bid was inadvertently put in the Maintenance Service interoffice mailbox although it was clearly marked sealed bid/City Clerk’s Office. She further explained that she received a phone call the next morning from Maintenance Services that the bid had ended up in their interoffice mail. Ms. Fiumara advised that if she could not have verified what time it arrived at City Hall she would have rejected the bid as non-responsive, but because it was time stamped UPS verified at 8:15 a.m., staff has a process in place as to not penalize bidders when it is City error. She added that there is not any good statue or procurement rule; therefore, staff has an internal process in which they notify everyone involved and will reopen the bid. Mayor Nexsen stated it seemed to him that staff needs to get some procedures in place so that when a bid package is received it ends up in the right department. He suggested starting the bid process over, to which Ms. Garry replied that Council can accept the recommendations that staff gave them based on the bids that were received, may award the bid to either one of the bidders based on the determination that they make, or can reject all bids and ask staff to start the procurement over. Mayor Nexsen suggested the bid process be started over. Ms. Garry noted that the only disadvantage to that is the bids have been opened and read and are now public. Councilmember Alger agreed with Mayor Nexsen and suggested extending the current contract. Ms. Fiumara explained that the current contract cannot be extended because the contract does expire on June 30th per the first solicitation staff did three years ago and there was no mechanism to extend the contract. Mr. Clark added that staff could contact the vendor and ask whether they would be willing to honor the existing prices for a particular time period. Councilmember Barlow asked Ms. Vicker if she would be interested in re-bidding, to which she replied absolutely. Lake Havasu City Page 16 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final There being no further comments, Mayor Nexsen closed the public hearing. Councilmember Alger moved to reject the bids as suggested, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 8.19 ID 14-0328 Award Bid for the Kiowa/Palo Verde Intersection Asphalt Pavement Rehabilitation Program to Pioneer Earthmovers for FY 2014/15 (Project No. ST2630) Mr. Clark advised that the item before the Council is award the paving work to be done at the high school traffic signal project. He said with Council approval tonight, staff anticipates actual paving work to begin in approximately two weeks. Mr. Cassens and Councilmember Brister thanked Mr. Clark for providing his leadership and guidance on the project. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to award the bid for Project No. ST2630 – FY 2014-2015 Kiowa/Palo Verde Intersection Asphalt Pavement Rehabilitation Program to Pioneer Earthmovers for a total amount not to exceed $108,300, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Alger, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin 9. CURRENT EVENTS Mayor Nexsen said he is the Chair of the League of Arizona Cities and Towns Resolutions Subcommittee and was happy to report that all of the Lake Havasu City and Tri-City Council resolutions got through the first subcommittee and they will be discussed again before the full committee of 91 cities in August. Councilmember Brister reported that she recently attended a WACOG Executive Board meeting. She was happy to report that everything on the agenda passed. 10. CALL TO THE PUBLIC There were no requests to address the City Council. 11. FUTURE MEETINGS Lake Havasu City Page 17 Printed on 7/11/2014 City Council Regular Meeting Minutes - June 24, 2014 Final Tuesday, July 8, 2014 @ 6:00 p.m. – Regular Meeting Tuesday, July 22, 2014 @ 6:00 p.m. – Regular Meeting 12. FUTURE AGENDA ITEMS There were no requests for future agenda items. 13. ADJOURN Upon motion by Councilmember Barlow and seconded, the meeting adjourned at 8:02 p.m. CERTIFICATION I hereby certify that the foregoing is a full and true copy of the Regular Meeting Minutes of the Lake Havasu City Council held on the 24th day of June, 2014. I further certify that the meeting was duly called and posted, and that a quorum was present. ____________________________________ Kelly Williams, City Clerk Lake Havasu City Page 18 Printed on 7/11/2014