City Council

Mayor Mark S. Nexsen Lake Havasu City Vice Mayor Donna Brister Police Facility Councilmember Dean Barlow 2360 McCulloch Blvd North Councilmember Don Callahan Lake Havasu City, Arizona 86403 Councilmember Jeni Coke www.lhcaz.gov Councilmember Michele Lin Councilmember Cal Sheehy City Council Regular Meeting Minutes - Final Tuesday, November 24, 2015 6:00 PM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Chaplain Bea Evans, Stonebridge Christian Church Pastor Kay Zimmerman of City on a Hill International Church gave the invocation. 3. PLEDGE OF ALLEGIANCE Mayor Nexsen led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Mark S. Nexsen, Councilmember Dean Barlow, Vice Mayor Donna Brister, Councilmember Don Callahan, Councilmember Jeni Coke, Councilmember Cal Sheehy and Councilmember Michele Lin 5. CALL TO THE PUBLIC There were no requests to address the Council. 6. CONSENT AGENDA 6.1 ID 15-0496 Approve the November 12, 2015, City Council Regular Meeting Minutes 6.2 ID 15-0493 Adopt Resolution No. 15-2998 Ratifying the City Manager's Execution of an Arizona Department of Transportation Highway Encroachment Permit Application 6.3 ID 15-0487 Recommend Approval of a Special Event Liquor License Application for the Friends of the Fair on January 30 & 31, 2016, at 7200 Dub Campbell Parkway / Sayre 6.4 ID 15-0488 Recommend Approval of a Special Event Liquor License Application for the Lake Havasu Drag Racing Association on January 2, 2016, at 7260 Sara Park Way / Hughes Lake Havasu City Page 1 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 6.5 ID 15-0489 Recommend Approval of a Special Event Liquor License Application for the Lake Havasu Drag Racing Association on January 16, 2016, at 7260 Sara Park Way / Hughes 6.6 ID 15-0491 Recommend Approval of a Special Event Liquor License Application for the Friends of the Fair on February 12, 13 & 14, 2016, at 7200 Dub Campbell Parkway / Sayre 6.7 ID 15-0497 Call for Executive Session Pursuant to A.R.S. 38-431.03(A) 5:00 p.m. Tuesday, December 8, 2015 Councilmember Callahan moved to approve the Consent Agenda as presented, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Vice Mayor Brister, Councilmember Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 15-0471 Investment Report at September 30, 2015 Mayor Nexsen stated that this item was for informational purposes only. 7.2 ID 15-0499 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions City Clerk Kelly Williams announced the current vacancies on various Lake Havasu City Boards, Committees, and Commissions. 7.3 ID 15-0498 City Manager's Report City Manager Charlie Cassens reported on the following: • New blue recycle bins are now located in the parks along the Channel at Rotary Community Park and at London Bridge Beach. The bins were donated by Republic Services. • Code Enforcement Updates. There are currently 35 active and open cases. • Building Permit Updates since last report on November 12, 2015. • The America’s Best Communities Prize Competition Team will be presenting the Vision 20/20 Plan on Tuesday, December 15, 2015 at 6:00 p.m. at the Lake Havasu High School Performing Arts Center. • Upcoming Special Events: • 11/27/2015 – Swim Across the Channel & Festival of Lights at 6:00 p.m. to 9:00 p.m. • 11/28/2015 – The Dirty Turkey Run at SARA Park from 9:00 a.m. to 11:00 a.m. • 12/4/2015 – LHC Professional Firefighters Christmas Party at London Bridge Beach from Lake Havasu City Page 2 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 4:30 p.m. to 11:00 p.m. • 12/4/2015 and 12/5/2015 – Annual Boat Parade of Lights at the Bridgewater Channel from 6:30 p.m. to 9:30 p.m. • 12/4/2015 and 12/5/2015 – Havasu Jets and Desert Hawks RC Club at SARA Park from 8:00 a.m. to 3:00 p.m. • 12/5/2015 – Jingle Bell Walk & Fun Run at Grand Island Park and Walking Path from 8:00 a.m. to 12:00 p.m. • 12/6/2015 – The Wheeler Park Christmas Tree Lighting at Wheeler Park from 6:00 p.m. to 7:00 p.m. • 12/6/2015 – The River Riders Toy Run on McCulloch Boulevard from 12:30 p.m. to 5:00 p.m. • 12/12/2015 – Community Dinner at the Community Center at 5:00 p.m. • City Offices will be closed on November 26th & 27th for the Thanksgiving holiday. Mayor Nexsen presented a proclamation to Lisa J. Krueger of the Lake Havasu Area Chamber of Commerce recognizing Saturday, November 28, 2015, as “Small Business Saturday.” 8. PUBLIC HEARINGS 8.1 ID 15-0490 Recommend Approval of a Special Event Liquor License Application for the Lake Havasu Area Chamber of Commerce Winter Fest on February 20 & 21, 2016, at 2119 McCulloch Boulevard / Krueger Special Events Coordinator Brian Allen stated that Lisa J. Krueger has applied for a Special Event Liquor License for one bar setup for a special event to be held at 2119 McCulloch Boulevard, on February 20th and 21st, 2016, from 10:00 a.m. to 5:00 p.m. Mr. Allen added that all fees have been received, and no objections were submitted. Councilmember Coke recused herself from participating and voting on this item. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Special Event Liquor License for the Lake Havasu Area Chamber of Commerce Winter Fest, on February 20 & 21, 2016 from 10:00 a.m. to 5:00 p.m. and 10:00 a.m. to 4:00 p.m. at 2119 McCulloch Boulevard, seconded by Councilmember Callahan, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember Barlow, Vice Mayor Brister, Councilmember Callahan, Councilmember Sheehy and Councilmember Lin Recused: 1 - Councilmember Coke 8.2 ID 15-0467 Series #12 Liquor License, Starbucks Coffee #8853, 55 Lake Havasu Avenue South, #A / Lewkowitz Lake Havasu City Page 3 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 Ms. Williams advised that Ms. Andrea Dalhman Lewkowitz has applied for a Series #12 Restaurant Liquor License for Starbucks Coffee #8833, located at 55 Lake Havasu Avenue South, #A. Ms. Williams noted that all posting requirements have been met, all fees have been paid, and no objections were received. She added that the location is properly zoned for a Series #12 liquor license. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #12 liquor license for Starbucks Coffee #8853, 55 Lake Havasu Avenue South, #A, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Vice Mayor Brister, Councilmember Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.3 ID 15-0479 Series #12 Liquor License, The Brew Shack, 2018 McCulloch Boulevard North Suite #F/Shackelford Ms. Williams advised that Mr. Jerry Dean Shackelford has applied for a Series #12 Restaurant Liquor License for The Brew Shack, located at 2018 McCulloch Boulevard North, Suite #F. Ms. Williams noted that all posting requirements have been met, all fees have been paid, and no objections were received. She added that the location is properly zoned for a Series #12 liquor license. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Callahan moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #12 liquor license for The Brew Shack, 2018 McCulloch Boulevard North, Ste. #F, seconded by Councilmember Brister, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Vice Mayor Brister, Councilmember Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.4 ID 15-0372 Adopt Ordinance No. 15-1137 Amending Lake Havasu City Code Section 3.20.040, Schedule of Fees and Service Charges, to Update Fees and Charges Mr. Cassens stated that staff annually reviews the fees and charges for the litany of public services that the City provides to the community. Mr. Cassens said the City provides approximately 360 services that are charged a fee, and added that the list of proposed fee changes were included in the packet. Lake Havasu City Page 4 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 Ms. Tabatha Miller, Administrative Services Director, said the fees surrounding the Aquatic Center have been more controversial; therefore, staff has put together a presentation to help explain the process of how those fees were calculated. Ms. Miller’s presentation was specific to the Aquatic Center pool rental fees for the swim teams, and discussed the following key topics: • Aquatic Center Budget for Fiscal Years 2014-15 and 2015-16; and Actuals for Fiscal Year 2014-15. • Proposed Direct Cost Recovery for Leisure and Cultural Services. • Monthly Direct Costs Allocated to Swim Teams. • Average Monthly Hours of Pool Operation for Aquatic Center (Fall Season). • Swim Team Accommodations. • Fee Alternatives. Mayor Nexsen asked how the monthly direct costs are calculated, to which Ms. Miller explained that each area determines the total number of hours available which are then allocated between each of the programs. She added that the costs are calculated at a fully benefited rate, which includes benefits, workers comp, and all of the other facets of having a worker on the job for that day. Mayor Nexsen said everyone should understand that the Council has the job of watching the taxpayers’ dollars; therefore, when looking at fees and fee increases, it is always in mind that the taxpayers want to see the best job being done with their money. He said many of these programs are subsidized and, when looking at the big picture, the City loses approximately $1 million at the Aquatic Center on an annual basis. Mayor Nexsen stated that the Council heard from a consultant a few weeks ago who reported that the City could actually lower costs at the Aquatic Center if the schedules for the morning swimmers and afternoon swimmers changed. He explained that currently the exercise groups are using the pool in the morning hours which requires the pool to be heated to 84 degrees or higher, and the swim teams are using the pool in the afternoons which requires the temperature to be lowered. He suggested that the swim teams consider moving to the mornings and the exercise classes in the afternoon to save on utility costs. Mayor Nexsen said he understands that 59-percent seems high and proposed that the Council consider a modest fee increase from $850 to $950, but with ratcheted increases, of 3 to 5-percent, each year so the teams can prepare for future increases in dues or fundraising. Councilmember Lin asked when the last fee increase for the swim team was, to which Ms. Miller said it was in 2011. Councilmember Lin asked how much it was increased in 2011, to which Senior Lake Havasu City Page 5 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 Accountant Sandy McCormack said to her recollection the fee increased from $700 to $850. Mr. Cassens said the proposed fee increase in 2011 was higher; however, the fee was decreased by the Council at that time. Mayor Nexsen opened the public hearing. Ms. Gloria Sneed and Ms. Danielle Ahrens addressed the Council. Ms. Sneed said she sits on the Board of Directors for the Havasu Stingray Swim Team (Swim Team) and is the parent of a swimmer who has been on the team for approximately three years. Ms. Sneed gave some background information on the Swim Team. She stated that they are a non-profit organization and their operating costs include pool rental fees, sanction fees, and coach fees. She added that their income is generated through fundraising, business sponsors, donations from other local non-profits, and member fees. Ms. Sneed said that while raising the dues $10 a month per member may sound easy, it is not, because they have members that pay different amounts each month depending on the number of days they swim. She said raising the member dues may not also be feasible for some parents who are struggling to pay each month. Ms. Sneed explained that they have swimmers that move on to swim at the high school level and do very well because they train with their team for the remainder of the year. She said it is difficult to make market cost comparisons with other facilities because while others may pay more, they also have bigger, state-of-the-art pools with more swimmers and a higher potential for income. Mayor Nexsen asked if the Swim Team could give the Council some feedback on their proposal of increasing the fees by $100 this year with ratcheted increases over the next few years, to which Ms. Ahrens said that proposal would be much more affordable for them. She said they would not be able to raise the fees for 2016 because some of their swimmers have already signed contracts for next year; however, they could look at increasing the fees in year 2017 to make up the difference as they are already operating at a loss. Mr. Lan Blair, Pastor of Abundant Grace Church, addressed the Council and said he has never seen a City Council more amenable to the students and youth of this city and he congratulated their hearts for the young people of the future. He said he was concerned about the $16 increase in teen break registration, and asked for the Council’s consideration of decreasing the increase from $16 to $8, as he believes it would be more feasible for families with multiple children. Mr. Mick Scharbrough, Past President of the Havasu Stingray Swim Team, addressed the Council and said the extent of the increase is the problem because it will be a problem for the parents. He said during the economic downturn of the market the Swim Team voluntarily suggested an increase of $100 per month from $750 to $850. Mr. Scharbrough said the Council needs to stay on point and keep the increases in moderation to foster good programs and sports for the children. He addressed the minimum number of lifeguards on duty during practice and suggested that the City Lake Havasu City Page 6 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 look at lowering the costs by utilizing the coaches who are also certified lifeguards during the swim team hours. Mayor Nexsen asked Mr. Scharbrough if he could address the suggestion about a possible change in schedule for the swim teams, to which Mr. Scharbrough said the challenge is with the various age groups because the team has swimmers as small as 6-years old to high school age. He said it is very difficult to have a 6-year old get up for practice at 5:00 a.m., and added that it is the younger swimmers who go on to swim for the high school; therefore, by not funding the younger swimmers it hurts the high school team and the chance for swimmers to gain swim scholarships. Mayor Nexsen asked if the younger swimmers could still hold their practices in the mornings after the older swimmers, to which Mr. Scharbrough said that is something the City will have to discuss with the teams. He said the challenge is going to be what might work for the seniors, may not work for the juniors or younger ones. Councilmember Sheehy asked for clarification on the total number of hours for lifeguards, to which Ms. Miller said it is a total of 36 hours per team each month. Ms. Guilia Dickinson, swim coach for the Lake Havasu High School Swim Team, addressed the Council and said they have a very successful program because of the Havasu Stingrays Swim Team. She said they are four time regional champions, and added that their boys’ team placed 10th and girls’ team placed 8th in state this year. She said most of the swimmers she takes to state are from the Havasu Stingrays Swim Team and have been in the program since they were young. She added that without them, their program will not be successful. Ms. Dickinson discussed the educational benefits of having great athletic programs that encourage students to be successful and work hard. She added that she is also a lifeguard and has worked the morning and afternoon hours, and said the older generation is not really interested in the afternoon sessions. Ms. Dickinson said she believes having ratcheted increases is the best option for everyone, but added that there should be a cap. Mr. William Busto, President of the Havasu Stingray Swim Team, addressed the Council and said they understand that cost increases are necessary and reflect actual costs, but questioned the 10-percent to 25-percent change in fees that they will incur on top of the 59-percent increase in operation costs. He asked if the cost of utilities, for example increasing and lowering the pool temperature, is taken into consideration for the other programs. Mr. Brett Miller, Parks and Recreation Advisory Board Member, addressed the Council and said he helps the swim teams by managing their timeclocks during meets. He said he also volunteers and provides technical support at the Aquatic Center with the swim team equipment. Mr. Miller said a 59-percent increase is going to be difficult; however, the proposal he heard from the Council tonight seems more manageable. Lake Havasu City Page 7 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 Councilmember Brister asked if the Administrative Services Director could provide some clarification on Mr. Busto’s statement that they would incur two fee increases, to which Ms. Miller said the costs actually decreased since the last time they were increased due to a decrease in labor, therefore, if all costs remained the same, it would reflect a 150-percent increase not a 59-percent increase. She said while it is a significant increase, it is not because of increased costs, but a reduction in labor costs. Mayor Nexsen asked if the solar panels also had an impact, to which Ms. Miller said the City does have some changes in the utility budget due to the solar project. There being no further comments, he closed the public hearing. Mayor Nexsen proposed the following fee increases: • Teen Break - from $40 to $48, and • Swim Team – from $850 to $950, with ratcheted yearly increases. Councilmember Sheehy proposed the following changes: • Swim Team – no increase for the remainder of this fiscal year. • Swim Team increase in fiscal year 2017 by 10-percent, to $935 per month. • Swim Team increase in fiscal year 2018 by 5-percent, to $981.75. • No additional increases after 2018 until economic conditions are reviewed. • Pool Rental – Swim Team (each additional hour) from $23.61 to $26 per hour, with small yearly increases. • Teen Break – remain at $40 (no increase). • London Bridge Stage Rental – concerned that the newly proposed fee of $75 was too high. • Tournament/Group Field Usage (Per Day and Night) – concerned that the 100-percent increase from $15 to $30 per 2-hour increment was also too high. In response to Councilmember Sheehy’s question regarding the proposed fees for the Havasu Mobility Services Curb-to-Curb Service Fares, Mayor Nexsen noted that the various fees were listed under category S-280, A through E. Mayor Nexsen asked staff what the total cost of Teen Break was, to which Ms. Miller said the total cost is around $275,000. She added that there are a number of in-kind hours and donations as well. Ms. Miller noted that $40,000 was generated from Teen Break registration and scholarships last year. Councilmember Lin asked for the total number of participants registered for Teen Break last year, to which Ms. Miller said there were 988 in 2015, approximately 1,000 in 2014, and 1,427 in 2013. Councilmember Lin asked if the fees for Teen Break had ever been increased, to which Ms. Miller replied no. Lake Havasu City Page 8 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 In response to Councilmember Sheehy’s question, Ms. Miller explained that the $275,000 is not all revenue; it is the total cost of the program and also includes a pretty substantial portion of direct labor costs. Councilmember Coke asked what percentage was being proposed for yearly increases to the Swim Team fees, to which Mayor Nexsen replied that he would propose 5-percent increases until it reaches the 25-percent level with the idea that costs will be reviewed annually. Mr. Cassens stated that the City is not out to price anyone out or see that any of the programs go away, as they all provide a benefit to the community; however, the costs to provide these services do not change and it becomes a matter of determining how much the users pay and how much the taxpayers pay. He said in this industry the idea is to move towards a user-based business model. Councilmember Barlow asked how the market values are established, to which Ms. Miller said the departments look at what the market will bear in addition to what other cities and entities provide that same service for. Ms. McCormack noted that some of the fees are calculated at a percentage of recovery and asked if the percentages needed to be calculated prior to adoption or could be factored in, to which City Attorney Kelly Garry said the percentages could be factored in if the motion passes, but the City may not be able to make all of the changes directly at this time as some will have to come back for the next round in review of the fees. She said they could certainly note the incremental increases in the fee schedule or something to that affect, but would not want to put those increases in as they will have to be reviewed annually. Councilmember Sheehy moved to adopt Ordinance No. 15-1137 amending Lake Havasu City Code Section 3.20.040, to update the Schedule of Fees and Service Charges, with the following changes: Teen Break to remain at $40, Pool Rental for Swim Team (for 36 hours) to remain the same at $850 through 2016, with a 10-percent increase in 2017 and an additional 5-percent increase in 2018 and each year after until the 25-percent level is reached, change the London Bridge Stage Rental Fee from $75 to $40, change the Pool Rental-Swim Team (for each additional hour) from $23.61 to $26, and change the Tournament/Group Field Usage (Day Use) from $15 to $20 for a 2-hour increment and Tournament/Group Field Usage (Night Use) from $20 to $30 for a 2-hour increment, seconded by Councilmember Lin, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Vice Mayor Brister, Councilmember Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 9. CURRENT EVENTS Lake Havasu City Page 9 Printed on 12/9/2015 City Council Minutes - Final November 24, 2015 Councilmember Sheehy reported that the “Wings, Wheels, and Waves / Big Boys Toys” will hold an event on March 5, 2016. He added that the Airport will be hosting a Field Trip with students from Starline Elementary School on Friday, December 11, 2015. Mayor Nexsen gave an update on the Transaction Privilege Tax (TPT). 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, December 8, 2015 @ 6:00 p.m. – Regular Meeting Tuesday, December 22, 2015 @ 6:00 p.m. – Regular Meeting 12. FUTURE AGENDA ITEMS There were no requests for future agenda items. 13. ADJOURN Upon motion by Councilmember Callahan and seconded, the meeting adjourned at 7:30 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 November, 2015. I further certify that the meeting was duly called and posted, and that a quorum was present. ____________________________________ Kelly Williams, City Clerk/CMC Lake Havasu City Page 10 Printed on 12/9/2015