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, September 23, 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 Ray Carter, Redemption Hill Calvary Chapel Pastor Ray Carter, from the Redemption Hill Calvary Chapel, 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. Charles Carelli addressed the Council and said in 2010 he and his wife bought a lot in Lake Havasu City and built a home on that lot in 2012. He said after their home sold he received a bill from the City for $8,000 for a transaction or sales tax. Mr. Carelli requested clarification on the tax. Mayor Nexsen said the City does have a transaction privilege tax and asked that Administrative Services Director Valerie Fenske follow up with Mr. Carelli. Mr. Anthony Boyd addressed the Council and said he was a member of a church that would be affected by the proposed item concerning an Entertainment District. He said he disagreed with forming such a district and encouraged the Council to work with the church. Mr. Tony Begay addressed the Council and said was a member of the Victory Church and was in attendance to speak on behalf of the youth in Lake Havasu City. He said he was opposed to Lake Havasu City Page 1 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final allowing a liquor license to an establishment that is within 300-feet of a school or church. 6. CONSENT AGENDA 6.1 ID 14-0489 Approval of the September 9, 2014, City Council Special Meeting Minutes and Regular Meeting Minutes 6.2 ID 14-0465 Recommend Approval of a Special Event Liquor License Application for the K-12 Foundation Taste of Havasu on October 21, 2014, at 157 Paseo Del Sol / Campbell 6.3 ID 14-0467 Recommend Approval of a Special Event Liquor License Application for the Downtown District/Main Street Association Car Show on October 16, 2014, at 2119 McCulloch Boulevard / Van Ella 6.4 ID 14-0492 Call for Executive Session Pursuant to A.R.S. 38-431.03(A) 5:00 p.m. Tuesday, October 14, 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 14-0490 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions City Clerk Kelly Williams announced current vacancies for various Lake Havasu City Boards, Committees, and Commissions. 7.2 ID 14-0491 City Manager’s Report City Manager Charlie Cassens reported on the following:  Lake Havasu City released the City’s first ever Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2013. This user-friendly financial document contains information derived from the City’s audited financial statements. The PAFR is not audited but rather is intended to present select, relevant information in a non-technical format to the community. The PAFR can be found on the Lake Havasu City website.  On September 12th at 1:00 p.m., the Lake Havasu Veterans Treatment Court had its first ever graduation of two Veterans. The graduation began with the presentation of “Colors” by the Marine Corps League and the courtroom was filled with dignitaries, mayor and city council members, and family members of the Veterans to show their support. The Veterans Court program is a Lake Havasu City Page 2 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final collaborative effort between the Courts, City prosecutors, defense counsel, mental health counselors and the VA to assist the defendant in rehabilitation and reengagement into society.  The Lake Havasu City Police Department will be recognizing local citizens for their crime fighting efforts in an award ceremony, Monday, September 29th at 4:00 p.m., in the council chambers. The awards range from citizens who have witnessed suspicious persons and thwarted a crime as well as citizens who witnessed a crime and through their efforts the suspects were arrested and charged. Citizens will also be recognized for life saving efforts.  Bring the entire family, a chair or blanket, to enjoy a cool autumn evening filled with live music in the park at London Bridge Beach. Every Friday evening during the month of October (with the exception of Halloween) you will be treated to special musical guests. Gates open at 5:00 p.m.; concert starts at 6:00 p.m. Food vendors will be on-hand for the event and Barley Brothers will be offering beer and wine for purchase. For more information, contact the Recreation Division.  Since the last report of September 9th, Code Enforcement staff has received 24 new complaints, performed 27 initial complaint inspections, 45 re-inspections, sent 6 violation notices, and closed 33 cases. There are currently 35 active and open cases.  With three monsoon storms striking Lake Havasu City this season, street crews ask for the public’s patience as they scrape and sweep our streets. The last two storms struck the northern area of the city which is an unusual pattern for us. In order to sweep the streets at the end of the monsoon season in a timely manner, the Maintenance Services Division will contract out sweeping. Council will see this agenda item at the October 14th meeting.  Don’t forget to join us to celebrate another National Public Lands Day event on Saturday, September 27th. Bring your rakes, shovels, working gloves, sun-block, a beach chair, and a hat to the shoreline of “That Beach” located along the northwest area of the Island between Crazy Horse Campground and the lighthouse north of Site Six. Activities include cleaning up trash and dressing the beach. Kickoff and registration begins at 7:00 a.m. with activities to last until noon. There will be a free lunch for all volunteers. For more information and to pre-register, contact Gary Parsons at 453-6455. Pre-registration for groups and organizations is highly recommended.  The next Coffee with the Mayor is scheduled for October 3rd at Makai Café from 7:30 a.m. to 9:00 a.m. Residents are encouraged to attend to express any issues, concerns, or questions.  Big Boys Toys will be held October 4th from 9:00 a.m. to 8:00 p.m. on McCulloch Boulevard.  The 2nd Annual Coyote Cares for Kids will be held in the R Bar parking lot on October 4th from 10:00 a.m. to 2:00 p.m.  The 33rd Annual IJSBA World Finals will be held October 4th through October 12th.  The Breast Cancer Awareness Fun Run/Walk will begin at the Aquatic Center at 7:30 a.m. on October 4th.  The IJSAB Parade of Nations will be held on the London Bridge Stage on October 8th from 7:00 p.m. to 10:00 p.m.  Thunder on the River Lucas Oil Drag Boats will be held at Rotary Park October 10th through October 12th.  Taste of Havasu will be held in the London Bridge Plaza parking lot on October 21st from 5:00 Lake Havasu City Page 3 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final p.m. to 7:30 p.m. 8. PUBLIC HEARINGS 8.1 ID 14-0482 Adopt Resolution No. 14-2860 Appointing Member(s) to the Airport Advisory Board Ms. Williams advised that the next three items are applications for boards, committees and commissions. Ms. Williams said the first application is requesting consideration for appointment as a non-pilot member to the Airport Advisory Board. She added that this appointment is needed to fill an alternate non-pilot member vacancy that expired July 1, 2014. Ms. Williams noted that Mr. Ioimo was in attendance to make a brief presentation and answer any questions from the Council. Mr. Frank Ioimo said he was before the Council tonight for consideration of appointment as a member to the Airport Advisory Board. Mr. Ioimo provided a brief outline of his personal and professional experience, and added that would be a great honor to serve the community. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to adopt Resolution No. 14-2860 appointing Mr. Frank Ioimo to the Airport Advisory Board for a term ending July 1, 2017, 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 8.2 ID 14-0483 Adopt Resolution No. 14-2861 Appointing Member(s) to the Parks and Recreation Advisory Board Ms. Williams said one application requesting consideration for appointment as a regular member to the Parks and Recreation Advisory Board was also received. She added that the appointment is needed to fill a regular member vacancy that expired July 1, 2014. Ms. Williams noted that Mr. Wager was also in attendance tonight. Mr. Wagner addressed the Council and said has spent 32 years maintaining and developing the parks in Lake Havasu City. He said he would like to continue doing that in some capacity and thought the Parks & Recreation Advisory Board would be a good fit. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to adopt Resolution No. 14-2861 appointing Mr. Lake Havasu City Page 4 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Bart Wagner to the Parks and Recreation Advisory Board for a term ending July 1, 2017, 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 8.3 ID 14-0479 Adopt Resolution No. 14-2855 Appointing Member(s) to the Planning & Zoning Commission Ms. Williams said the City Clerk’s Office also received one application requesting consideration for appointment as a member to the Planning & Zoning Commission. She said the appointment is needed to fill an alternate member vacancy that expired July 1, 2014. Mr. Gerald Henkels addressed the Council and said he has lived in Lake Havasu City for approximately two years now, and briefly reviewed his experience and qualifications. Mr. Henkels said he was applying for the position to become more involved with City organizations. Mayor Nexsen said Mr. Henkels sent an email to several of the councilmembers apparently opposing a number of different things including the drag strip, code enforcement, and transit, and added that the email asked the Council to explain their acts. Mayor Nexsen asked if Mr. Henkels was requesting to be on the Planning & Zoning Commission for the betterment of the community or if he has a personal agenda. Mr. Henkels replied that he did not have a personal agenda of any sort, but felt with this background he could be of some assistance and would like to learn more of what is going on in the City and be able to voice his opinion. Mayor Nexsen stated that being a member on the Planning & Zoning Commission is a very important position and requires an open mind. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to adopt Resolution No 14-2855 appointing Mr. Gerald Henkels to the Planning & Zoning Commission for a term ending July 1, 2017, seconded by Councilmember Coke, and carried by the following vote: Aye: 4 - Councilmember Barlow, Councilmember Alger, Councilmember Coke and Councilmember McAtlin Nay: 3 - Mayor Nexsen, Councilmember Brister and Vice Mayor Callahan 8.4 ID 14-0440 Adopt Resolution No. 14-2870 Establishing and Appointing Members to Lake Havasu City Page 5 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final the General Plan Advisory Committee Senior Planner Stuart Schmeling advised that this item is to establish the General Plan Advisory Committee and recommend a list of individuals for appointment to the General Plan Advisory Committee. Mayor Nexsen asked if the councilmembers that are also serving on this committee should abstain from voting, to which City Attorney Kelly Gary replied no. She added that there is no conflict of interest as this committee is different from the normal committees due to other provisions with respect to the General Plan. She added that staff is formalizing the committee so they are in compliance with the State code as far as being an advisory committee; however, if those members would feel more comfortable abstaining, that would be fine. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow recused himself from participating and voting on this item. Councilmember Brister recused herself from participating and voting on this item. Councilmember Callahan moved to adopt Resolution No. 14-2870 establishing and appointing members to the General Plan Advisory Committee, seconded by Councilmember Alger, and carried by the following vote: Aye: 5 - Mayor Nexsen, Councilmember Alger, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Recused: 1 - Councilmember Barlow Abstain: 1 - Councilmember Brister 8.5 ID 14-0441 Adopt Resolution No. 14-2871 Establishing and Appointing Members to the Zoning Advisory Committee Mr. Schmeling said the zoning code re-write is the second aspect of the Clarion contract and this item is to establish the Zoning Advisory Committee and appoint members to the committee. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to adopt Resolution No. 14-2871 establishing and appointing members to the Zoning Advisory Committee, 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 Lake Havasu City Page 6 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final 8.6 ID 14-0476 Adopt Resolution No. 14-2864 Approving Intergovernmental Agreement with the Lake Havasu Unified School District #1 for the Joint Use of Publicly Owned Facilities and Equipment Ms. Garry advised that this item is a collaboration of some past Intergovernmental Agreements (IGA) in an effort to bring all of the IGA topics under one agreement. She said the IGA contains sewer and water provisions, the shared assets provisions, provisions related to the City’s use of the school buses, and also contains a section regarding the Public Works Maintenance Facility which was the subject of the Council’s executive session where they had discussed that specific provision. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Mayor Nexsen asked, if this item passes, whether it would have to come back at a later date, to which Ms. Garry replied yes, to give further direction and to give some response to that matter. Councilmember Barlow moved to adopt Resolution No. 14-2864 approving the Intergovernmental Agreement with the Lake Havasu Unified School District #1 for the Joint Use of Publicly Owned Facilities and Equipment with the exception of Sections 3, 3.1, 3.2, 3.3, and 3.4, seconded by Councilmember Alger, and failed by the following vote: Aye: 2 - Councilmember Barlow and Councilmember Alger Nay: 5 - Mayor Nexsen, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Councilmember Brister moved to adopt Resolution No. 14-2864 approving the Intergovernmental Agreement with the Lake Havasu Unified School District #1 for the Joint Use of Publicly Owned Facilities and Equipment, seconded by Councilmember Callahan, and carried by the following vote: Aye: 5 - Mayor Nexsen, Councilmember Brister, Vice Mayor Callahan, Councilmember Coke and Councilmember McAtlin Nay: 2 - Councilmember Barlow and Councilmember Alger 8.7 ID 14-0494 Approve Renewal of Liability Insurance to Willis of Arizona Human Resources/Risk Management Division Manager Shirlee Palbicki addressed the Council and explained that the liability related insurance that the City carries is set to expire November 1st. She said staff received a renewal quote of $817,645.60 for coverage which represents an approximate 2.2 percent increase over last year’s premium. She added that the policies all remain the same and no changes were made to the deductibles. Ms. Palbicki stated that staff was requesting direction to bind coverage. Lake Havasu City Page 7 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to direct staff to bind coverage as recommended by Willis of Arizona for a total premium of $817,645.60, payable directly to Willis of Arizona, 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 8.8 ID 14-0493 Adopt Resolution No. 14-2869 Designating an Entertainment District in Accordance with Arizona Revised Statutes Section 4-207 Mr. Cassens advised that before the Council is an item that would suggest Council might consider adopting a resolution that would adopt an Entertainment District in Lake Havasu City. He said staff outlined a potential corridor that would include the areas along McCulloch Boulevard where much of the city’s entertainment venues are already placed. Mr. Cassens explained that the creation of an Entertainment District allows for establishments that wish to apply for a Series #06 liquor license to be exempted from the 300-foot perimeter State law that prohibits the issuance of a Series #06 liquor license within 300-feet of a church or a school. He said a few months ago the Council was placed in an awkward position of not recommending approval of a Series #06 liquor license to the State Board of Liquor License and Control because of that State law with respect to an application that was submitted by Gallagher’s Pub on McCulloch Boulevard. He said staff was made aware that there is also a provision in that law that would allow the issuance of a Series #06 license if an establishment were in an Entertainment District. Mr. Cassens further explained that State Statute allows communities of this size to establish one Entertainment District; however it cannot be larger than one square mile in total area and has to be contiguous. He said there are no other rights, responsibilities, or entitlements with being in an Entertainment District other than the proximity rule is lifted for establishments that are in this district. Mr. Cassens stated that the original map proposed for the Entertainment District illustrated the area that staff thought was most applicable to the issuance or establishment of an Entertainment District; however, staff did receive some concerns from two churches on the westerly section or lower area of McCulloch Boulevard. Mr. Cassens said the second map shows a truncated area which essentially ends the proposed Entertainment District in the general vicinity of Mulberry Avenue where it crosses McCulloch Boulevard. He explained that by incorporating this second map as the Entertainment District, this would accommodate the concerns of those churches and staff could also come back in the future with possible carve outs for those areas of concern at a later date without delaying the actual establishment of the Entertainment District. Mr. Cassens said staff does not want to give the impression that the City is forcing this on anyone who might not want it. He said by truncating the area in the general vicinity of Mulberry Avenue, this would allow the situation that is immediately at hand, particularly for Gallagher’s license application, and allow Lake Havasu City Page 8 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final staff to speak to the churches that are expressing an issue. Mayor Nexsen said he spoke with Pastor Blair from Abundant Grace Church who indicated that they have peacefully co-existed with Gallagher’s Pub for many years and believes they can peacefully co-exist going forward. Mayor Nexsen said there was a lot of discussion in the community that the City Council rejected Gallagher’s liquor license which put people out of work. He said he wanted to clarify that the City Council had to abide by State law and no matter how the Council voted, the State Liquor Board would be obligated under State law to deny the license and that is why the Council voted to not recommend approval of the liquor license to Gallagher’s Pub. He added that the City then learned there was an exception to this by having an Entertainment District, which would allow Gallagher’s to continue to operate and save jobs. Mayor Nexsen opened the public hearing. Pastor Jack Miller, from Victory Chapel, addressed the Council and said he appreciates the City’s willingness to communicate and explain the situation. He added that he submitted a letter to the Council explaining where the church stands and how they feel with regard to the Entertainment District. Pastor Miller said he liked the idea of the truncated area that would keep Victory Church out of that district, but said he is also aware that there are businesses there and it is a give and take. He said they do not want to encroach on what already exists, but if the City could make a district that would not involve the churches and keep the Entertainment District 300-feet away it would be very much appreciated. Mr. Ralph Winford Harris, Jr. addressed the Council and stated that he has attended Victory Chapel since 1983. Mr. Harris said the church has been next to bars in the past and they have had conflict because of over indulgence of alcohol. Mr. Eddie Mahler addressed the Council and said he attends Abundant Grace Church and has never observed problems with Gallagher’s Pub being out of control or unwieldy that would cause harm to anyone. Pastor Ken Belch, Hilltop Community Church, addressed the Council and asked if the Entertainment District would block off the streets for events, to which Mayor Nexsen replied that the Entertainment District is on paper only and would not be utilized to put on events. Mr. Steve Van Ella, President of the Downtown Association, addressed the Council and said the Association is working to revitalize the downtown area and the Entertainment District would be something that they would very much like to use to their advantage. Lake Havasu City Page 9 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Mr. Dennis Dunkirk, Exalted Ruler of the Elks Lodge, addressed the Council and spoke in favor of the Entertainment District. Mr. Randy Leonard, owner of Gallagher’s Pub, addressed the Council and stated that the Entertainment District would not be changing a whole lot. He said an establishment can still have a Series #12 restaurant liquor license next to a church and still serve alcohol. Mr. Leonard said his request for a Series #06 is due to the economy in Lake Havasu because they are only able to sell so much food, and added that as expenses continually go up and they are hitting a wall and that is why Gallagher’s applied for the Series #06 liquor license. Mayor Nexsen said he wanted to clarify that a Series #12 Restaurant liquor license can serve alcohol; however, a Series #12 is free and must maintain a percentage in food sales, whereas a Series #06 costs around $100,000 and there is no percentage in food sales required. Mr. Virgil Vinditto addressed the Council and said he was concerned that businesses may “clamber” to open businesses in the Entertainment District area, to which Mayor Nexsen explained that could not happen because they would have to have proper zoning in that area to open certain kinds of establishments. Councilmember Alger said she was in favor of the Entertainment District but said it seemed to be a stretch of two to three miles of residential district and expressed concern that someone could go to the Planning & Zoning Commission and request a commercial designation to open a restaurant or bar in the area. Mayor Nexsen noted that the area has to be contiguous and the total area for the size of Lake Havasu City can only be one square mile. Councilmember McAtlin added that most of the lots up McCulloch Boulevard are mostly developed with either apartments or housing. Councilmember Barlow moved to adopt Resolution No. 14-2869 designating an Entertainment District in Accordance with Arizona Revised Statutes Section 4-207(C)(4) with the truncated version of the map, 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 8.9 ID 14-0484 Approve Distance Restrictions Exemption and Reconsideration of Recommendation to Not Approve a Series #06 Liquor License for Gallagher’s Dining & Pub, 3524 McCulloch Boulevard/Leonard Lake Havasu City Page 10 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Ms. Garry said now that the Council has created an Entertainment District this is a companion item to allow the City Council to reconsider their decision made on August 12, 2014, which was to not recommend a Series #06 liquor license for Gallagher’s Pub based on the information received from the State Liquor Board because the establishment was within 300-feet of a church. Ms. Garry said now that they are within an Entertainment District the City Council may now elect to grant them exception from those distance requirements and recommend to the State Liquor Board approval of their liquor license application. Councilmember Barlow asked in approving this, it does not guarantee that the Liquor Control Board will approve the license, to which Ms. Garry replied that was correct, and added that it only means the City Council is recommending approval and the State Liquor Board will process it based on the recommendation of the City Council. Mayor Nexsen reiterated that the Council is not the final authority to approve the liquor license application. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Brister moved to approve an exemption from the distance restrictions and recommend that the Arizona Department of Liquor Licenses and Control approve a Series #06 Liquor license for Gallagher’s Dining & Pub, 3524 McCulloch Boulevard, 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 8.10 ID 14-0481 Discussion and Possible Action regarding the Home of the London Bridge Advisory Committee’s Presentation and Recommendation for the Home of the London Bridge Slogan Mr. Jay Coombs, Home of the London Bridge Advisory Committee Member, addressed the Council and said the mission of the Home of the London Bridge Advisory Committee (Committee) is to make recommendations to the Council as to possible uses of the City’s historic slogan “Home of the London Bridge” by the City for local municipal purposes. He thanked the committee members and City staff for their participation and valuable time and input. He also thanked Virgil Vinditto for his participation in preparing the presentation. Mr. Coombs said the underlying objective of the Committee is to preserve and promote Lake Havasu City’s unique heritage, the City’s historical identity, and local traditions as they relate to the London Bridge. He explained that the Committee was formed on the premise that the slogan “Home of the London Bridge” can be used by the City for local municipal purposes without compromising the advertising and promotional efforts of the Convention & Visitor’s Bureau (CVB). He added that Mr. Traub from the CVB took the time to address their committee and indicated that he supports what the Committee is trying to do. He said according to Mr. Traub how Lake Havasu City Page 11 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final you identify a city and market a city are two different things. Mr. Coombs said two slogans for different purposes can co-exist and both the Committee and the CVB have openly expressed a spirit of mutual support and cooperation given their respective agendas. Mr. Coombs gave the following presentation: Uses for “Home of the London Bridge”  Historical Uses  Current Uses  Proposed Uses Committee’s recommended actions  Council adoption by Proclamation the slogan “Home of the London Bridge” for use by the City for local municipal purposes.  Approve each of the proposed uses for “Home of the London Bridge” as set forth in the presentation.  Direct City staff to formulate a budget as required to implement each of the proposed uses as set forth in this presentation.  Seek the cooperation of and coordinate with the CVB to implement those recommendations requiring their assistance. Mr. Coombs said in closing, the Committee fully supports and endorses “Play Like You Mean It” for marketing and promotion of tourism to our City. He said the Committee’s proposals for use of “Home of the London Bridge” does not replace or displace “Play Like You Mean It” in any case. He added that all of the examples for “Home of the London Bridge” conform with the published CVB guidelines for use of the City logo mark, including placement, with the possible exception of the London Bridge banner. Mr. Coombs stated that the Committee is looking ahead to the future of Lake Havasu City and while good advertising slogans come and go in ever changing youthful markets, the London Bridge is here to stay and is the centerpiece of our community and the businesses and activity along Bridgewater Channel would not exist without it. Mr. Coombs added that the City owns this historic and iconic landmark and the slogan “Home of the London Bridge” can be proudly displayed by the City for municipal purposes and will serve the city well for decades to come. Councilmember Alger agreed that the city can use both slogans and that they can co-exist. She said she was glad to see both groups come together in agreement. Mayor Nexsen opened the public hearing. Ms. Diane Klostermeier addressed and thanked the Council for the opportunity to discuss the Lake Havasu City Page 12 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final slogan and the branding for Lake Havasu City. She said the slogan “Play Like You Mean It” will cater to the crowd that comes here and does not stay, does not by property here, and does not have businesses here. She added that she was not trying to demean all the work and effort that has gone into adopting that slogan; however, Mr. McCulloch, being an extraordinary entrepreneur, had an outstanding idea when he saw this vacant desert land. She said he had a vision that thousands of people could locate here, build a lovely city surrounded by beautiful views, blessed by a refreshing lake, which the Indians named Havasu “Blue Water” and welcomed fun, relaxation, adventure, sporting activities and even business development. Ms. Klostermeier added that Mr. McCulloch chose an outstanding historical antique, the London Bridge, and she supports the Committee that is working on maintaining that name. Mr. Doug Traub, President/CEO of the CVB, addressed the Council and said five years ago the City lost 500 jobs in the hospitality industry and because of that the CVB was looking at every possible thing they could do to make this city more attractive to visitors to help stimulate the economy. He said one of those things was to create a brand for the city that makes Lake Havasu City distinctive and unique and gives us a promise we can offer a visitor who might come and settle here. Mr. Traub said he attended a Home of the London Bridge Advisory Committee meeting and said there is no question it is an important icon. He added that he really respects that and respects the time the Committee has spent to put the recommendations forward to the Council but saying he endorses their proposal when he has not seen it is not particularly accurate. Mr. Traub added that he does think the slogans can co-exist but said they co-exist now. Mr. Traub explained that during the brand development the CVB looked at what would work the best to market the city to the outside world. He said the CVB committee spent a whole year getting public input on this and nobody ever stepped up to the plate. Mr. Traub said the world has changed and what we have to do is change with it; we have to be competitive and look at every possible way to enhance our competitiveness economically. He reiterated that he never saw what the Committee suggested and suggested that the Council table all of the recommendations so the Committee and CVB can meet to see if they can negotiate some type of settlement. Mr. Bob McClury, Chairman of the Board for the CVB, addressed the Council and said “Home of the London Bridge” is a nickname for the city and “Play Like You Mean It” is a marketing statement. He added that there was no activity with the “Home of the London Bridge” until the CVB developed the new logo. Mr. McClury explained that the CVB designed the logo to designate and invite active people to come to Lake Havasu City and enjoy all of the great things the city has to offer and the action statement “Play Like You Mean It” is the centerpiece that makes that marketing program work. He said by removing that action statement and plugging in a nickname is not the right answer and is going to kill the marketing program. He said he believes “Home of the London Bridge” should be used but not in conjunction with the branding effort the Council approved. Lake Havasu City Page 13 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Ms. Alexandra Seedorf addressed the Council and said she supports the CVB with regards to the new tagline. She said “Home of the London Bridge” has the connection with history but the City needs to embrace and invite the people that are coming into the city for the boats and for NHRA. Mr. Jim Salscheider, Lake Havasu Marine Association, addressed the Council and stated that branding is an incredibly large part of strategic marketing. He said he has attended CVB board meetings for over nine years and the CVB went through a difficult transition period until they found Doug Traub, and now the CVB is incredibly well managed, they know what they are doing, and they put this program together. He suggested that the Council step back and let them do what they need to do and what they know how to do, which will make a huge difference as we go forward in this city. Mr. Virgil Vinditto addressed the Council and said the city is not in the business of advertising to bring people here because the CVB has taken over that role. He said the Committee is not asking to remove the mark but for the Council to look at the slogan “Home of the London Bridge” for City business purposes to keep the historic piece of the city on the forefront. Ms. Toni Ade, member of the Home of the London Bridge Advisory Committee and President of the Pioneer Committee, addressed the Council and said the Committee does endorse “Play Like You Mean It” because it is bringing the public in and has rejuvenated the city. She said what the Committee is asking for is a proclamation for “Home of the London Bridge” to stay as part of our history, what you consider to be home, what you love, and what this city was built on. She said it is not a battle; the committee loves the CVB and thinks they are doing a fantastic job. Ms. Ade said this has come of age because things do change and the Committee wants to make sure a proclamation is declared and then go to the future. Mr. George Link, member of Home of the London Bridge Advisory Committee, addressed the Council and said this was a very touchy subject for him because “Home of the London Bridge” is personal. He said his father-in-law brought part of the bridge here when it was installed and it was Mr. McCulloch’s marketing genius that it worked out very well. He added that the London Bridge is 200 years old and is our city’s identity. Mr. Link said the CVB has done a good job in advertising activities, new brochures, and the website, but he feels “Play Like You Mean it” is the wrong message for the city. Mr. Link said the “Home of the London Bridge” should be the more dominant slogan and keep the Lake Havasu City logo. Mr. Tony Begay addressed the Council and said he and his wife moved here 17 years ago when they fell in love with the channel and the bridge. He said Lake Havasu City is always going to be “Home of the London Bridge.” Mr. Begay said the city probably should have had wayfinding years ago to declare “Home of the London Bridge” on everything. He said the CVB has been doing a great job by bringing people here but hoped the city would keep the “Home of the London Lake Havasu City Page 14 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Bridge” logo. Mr. Steve Greeley, member of the CVB board, addressed the Council and said he understands whole heartedly the tradition, the heritage, and importance of the “Home of the London Bridge.” He said he also understands the external marketing that the CVB has endeavored. Mr. Greeley said he has been critical of the CVB for many years; however, they have evolved as well as their marketing strategy. He said you have to look externally at what we should be doing to market the community and “Play Like You Mean It,” in his opinion, is the way to go. He added that he also understands the internal situation that the city has with the “Home of the London Bridge.” He said what is needed is for everyone to be more flexible. Mr. Greeley said the Committee did an outstanding job with the presentation and had some outstanding points but he also thinks Mr. Traub is very passionate and has some excellent points. He said there may be a compromise where the Lake Havasu City logo “Home of the London Bridge” and “Play Like You Mean It” can be combined for internal uses, and then when it is advertised outside of the city it is a generational thing. He said the CVB is trying to attract the Generation X babies, after the baby boomers, and that is the reason they went with “Play Like You Mean It” because the baby boomers are extremely active and that is the generation that has the money right now. He recommended that they look at it from two different perspectives, incorporate the things that solidify this community and build equity in our residence when it comes to the London Bridge, and then go after the visitors that we want to come to our community. He said “Play Like You Mean It” has been extremely popular from the get go and will continue to grow and bring in those tourists and additional economic impact to the community. Councilmember Brister agreed with Mr. Greeley and loved both slogans. She said she feels the Home of the London Bridge Advisory Committee and the CVB need to get together and work something out that would be great for everyone. Mr. Andrew Sthurley, business owner, addressed the Council and said the “Play Like You Mean It” slogan can be used in a 400-mile radius to bring in visitors from California, Nevada, and Arizona but he said he looks at the bridge every day and thinks Mr. McCulloch was amazing with putting Lake Havasu City on the map. He said you can build from two directions; the local economy from the local states which is imperative, but also sustain “Home of the London Bridge” to bring in the tourists that have the expendable money. Mayor Nexsen said the topic was losing direction and the discussion is not about whether to keep or get rid of any particular tagline, but to look at local uses of the “Home of the London Bridge.” Mr. Lonnie Taylor, member of the Home of the London Bridge Advisory Committee, addressed the Council and said the city needs to show respect for Mr. McCulloch and his vision to do something that brought most of us to Lake Havasu City. He added that he thinks the Committee and CVB can bring both together and make it work and blend in a constructive manner to move Lake Havasu City Page 15 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final forward. Mayor Nexsen said he understands the concept of protecting a trademark because if you start doing too many things and do not protect the trademark it will be lost in its entirety. He said what he would really like to do is allow the Council to approve a concept that both parties can accept and peacefully co-exist. Mayor Nexsen suggested the two groups get together and come back to Council with an agreement on the best way to use both slogans. Councilmember Callahan agreed with Mayor Nexsen and added that the Committee was not looking to get rid of anything, only to add “Home of the London Bridge” to a few things locally. He said he agreed with both sides of the argument but thought it could be worked out between both groups. Councilmember Alger commented that being born and raised in Lake Havasu City she understands where pioneers would appreciate the bridge, and added that the London Bridge and the English Village are very important to her. She said she also understands branding and making an image and a name for the city and felt that both slogans could co-exist and work together. Councilmember Barlow stated he thought it was a very good idea to bring the two committees together and come to some consensus. Mayor Nexsen requested the CVB and a few members of the Home of the London Bridge Advisory Committee meet and come to an agreement. Ms. Garry stated the committee would not be able to have a quorum of their committee and would have to facilitate their discussions back to the board through staff and then have a meeting with the rest of their Committee in order to disseminate that information. Mayor Nexsen stated there is going to have to be a little give by the Committee and if they do not, the CVB will have lost a lot of money trying to patent “Play Like You Mean It” because we have violated the patent. 8.11 ID 14-0430 Adopt Ordinance No. 14-1115 Amending the Tax Code Contained in Title 3 of the Lake Havasu City Code to Adopt the 2012-2013 Amendments to the Model City Tax Code. Ms. Fenske advised that this ordinance was introduced to the Council on September 9th and is before Council for adoption. She said the changes were proposed by the Unified Audit Committee to the Municipal Code Tax Code Commission, and added that because the City currently follows the Model City Tax Code the adoption of this ordinance does not have any fiscal impact. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to adopt Ordinance No. 14-1115 amending the Tax Code contained in Title 3 of the Lake Havasu City Code to adopt the 2012-2013 Lake Havasu City Page 16 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Amendments to the Model City Tax Code, 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 8.12 ID 14-0474 Adopt Resolution No. 14-2867 Approving Arizona Department of Transportation Aeronautics Airport Improvement Grant for Construction of Erosion Control and FOD Control Improvements near Runway 14 and Taxiway ‘A’ Airport Supervisor Steve Johnston stated that the City was offered a grant though the Arizona Department of Transportation (ADOT), in the amount of $297,000 with a City match of $33,000. He said this grant is for foreign object debris (FOD) control to eliminate rocks being thrown when helicopters land. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan asked if the matching funds had been budgeted, to which Mr. Johnston replied yes. Councilmember Barlow moved to adopt Resolution No. 14-2867 approving the reimbursable airport improvement grant agreement (E5S1R) with the Arizona Department of Transportation, Multimodal Planning Division, Aeronautics Group, for the construction of erosion control and FOD control improvements near Runway 14 and Taxiway ‘A,’ and authorize the City Manager to execute the agreement 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 8.13 ID 14-0473 Adopt Resolution No. 14-2868 Approving Arizona Department of Transportation Aeronautics Airport Improvement Grant for Relocation of Existing Fire Hydrant - Phase II Mr. Johnston advised that this is another grant from ADOT for $36,000 with matching City funds of $4,000. He explained that this grant is to relocate an existing fire hydrant on an airport ramp. Mayor Nexsen stated he found it odd that the fire hydrant was determined to be a safety issue by the Federal Aviation Association (FAA) and wondered why it was placed there, to which Mr. Johnston said it was done years ago before he took the position at the airport and does not know Lake Havasu City Page 17 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final why the hydrant was placed there. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McAtlin moved to adopt Resolution No. 14-2868 approving the reimbursable airport improvement grant agreement (E5S1Q) with the Arizona Department of Transportation, Multimodal Planning Division, Aeronautics Group, for relocation of existing fire hydrant – Phase II, and authorize the City Manager to execute the agreement 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 8.14 ID 14-0478 Adopt Resolution No. 14-2866 Approving Intergovernmental Agreement with La Paz County Jail District for Jail Services Police Chief Dan Doyle said in 2011 the City entered into a contract with LaPaz County Jail to provide housing of long-term prisoners at a rate of $65 per day with no intake fee and a transportation fee of $20 per prisoner. He said that three year contract is expiring and before the Council is the exact same contract with the exception of changing it to a five year contract. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Brister moved to adopt Resolution No. 14-2866 approving the Intergovernmental Agreement with La Paz County Jail District for jail services, 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 14-0475 Adopt Resolution No. 14-2863 Approving Grant Agreement with the State of Arizona, Oversight Council on Driving or Operating Under the Influence Abatement, for “Operation None for the Road” Chief Doyle advised that the City received approval for a $10,000 grant from the Oversight Council on Driving or Operating Under the Influence for their “Operation None for the Road.” He said staff is requesting approval of this resolution accepting those funds for additional DUI enforcement. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to adopt Resolution No. 14-2863 approving the Lake Havasu City Page 18 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Grant Agreement with the State of Arizona, Oversight Council on Driving or Operating Under the Influence Abatement, for “Operation None for the Road” and authorize the City Manager and Police Chief to execute the agreement on behalf of the City, 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 8.16 ID 14-0477 Adopt Resolution No. 14-2865 Approving Grant Agreement with the State of Arizona, Governor’s Office of Highway Safety, for “DUI/Impaired Driving High Visibility Enforcement Overtime” Chief Doyle stated that this is another $10,000 grant from the Governor’s Office of Highway Safety to provide additional DUI enforcement for overtime details. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to adopt Resolution No. 14-2865 approving the Grant Agreement with the State of Arizona, Governor’s Office of Highway Safety, for “DUI/Impaired Driving High Visibility Enforcement Overtime” and authorize the City Manager and Police Chief to execute the agreement on behalf of the City, 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 8.17 ID 14-0469 Award Bid for Six (6) 2015 Ford Utility Police Interceptors to Bradley Ford (ITB No. VR15-PDSUV) Chief Doyle advised that staff went out to bid for six police vehicles and Bradley Ford was the low bid at $189,302.70. He said money is budgeted and staff is requesting the Council’s approval to award this bid. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to award the bid for six 2015 Ford Utility Police Interceptors to Bradley Ford of Lake Havasu City, Arizona, for an amount not to exceed $189,302.70, 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 19 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final 8.18 ID 14-0471 Approve Cooperative Purchase of Police Vehicle Outfitting and Radios from Creative Communications Chief Doyle stated that this request is a purchase through Creative Communications to outfit their patrol vehicles as well as the purchase of new radios for a total of $97,747.69. He explained that this purchase would be through the State contract as well as a purchasing agreement through the City of Phoenix. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Alger moved to approve the cooperative purchase of police vehicle outfitting and radios from Creative Communications for an amount not to exceed $97,747.69, 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 8.19 ID 14-0480 Approve Sole Source Purchase of Software Implementation Services from Lucity Project Manager Jeremy Abbott advised that before the Council is a scope of services through Lucity for assisting staff with implementation, configuration, integration, data migration, system training, and go-live of the asset management software. He reviewed how the software will assist the maintenance, water, wastewater, and GIS divisions and said staff is asking for approval of a contract for $110,855 with $10,000 coming from the force account. He said this is a 270-day contract with the goal to have it completed by the end of this fiscal year. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McAtlin wondered if the wastewater asset management portion would be transferred to the new asset maintenance software program, to which Mr. Abbott answered that the wastewater division was already using Lucity. Councilmember Brister moved to approve the sole source purchase of software implementation services from Lucity in an amount not to exceed $110,855, 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 8.20 ID 14-0486 Award Bid for FY 2014-15 Fog Seal Program to Cholla Pavement [Project SM312C] Lake Havasu City Page 20 Printed on 10/17/2014 City Council Regular Meeting Minutes - September 23, 2014 Final Maintenance Services Division Manager Mark Clark advised that this item is the annual award for the fog seal program which is an important part of routine pavement maintenance. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to award bid for the FY 2014-15 Fog Seal Program to Cholla Pavement, 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 There were no council committee reports. 10. FUTURE MEETINGS Tuesday, October 14, 2014 @ 6:00 p.m. – Regular Meeting Tuesday, October 28, 2014 @ 6:00 p.m. – Regular Meeting 11. FUTURE AGENDA ITEMS Councilmember Alger said a few months ago she requested an item on the Rainy Day Fund, to which Mr. Cassens noted this discussion would take place at a work session on October 28th. 12. ADJOURN Upon motion by Councilmember Barlow and seconded, the meeting adjourned at 8:47 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 23rd day of September, 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 21 Printed on 10/17/2014