City Council

Mayor Mark S. Nexsen Lake Havasu City Vice Mayor Don Callahan Police Facility Councilmember Dean Barlow 2360 McCulloch Blvd North Councilmember Donna Lake Havasu City, Arizona 86403 Brister-McCoy www.lhcaz.gov Councilmember Jeni Coke Councilmember Michele Lin Councilmember Cal Sheehy City Council Regular Meeting Minutes - Final Tuesday, March 8, 2016 6:00 PM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Captain Stephanie Lueras, Salvation Army Captain Stephanie Lueras with the Salvation Army 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 Donna Brister-McCoy, Vice Mayor Don Callahan, Councilmember Jeni Coke, Councilmember Cal Sheehy and Councilmember Michele Lin 5. CALL TO THE PUBLIC Mr. John Reinartz addressed the Council and said he is a test engineer for Site 5 at the Proving Grounds in Yucca, Arizona, and appreciates the history of the Site Six building; however, as a fisherman, the building does not do anything for him. He said he would rather see more parking, with easier access to the lake, and cleaning stations. He said as a soccer coach there are over 750 kids that need soccer fields and asked the Council to take action on developing more fields. Ms. Diane Klostermeier addressed the Council and said she appreciates the beautiful designs of the proposed Site Six building. She said the building is on City-owned land and wondered why the City is not leasing the property to a private entrepreneur. She referenced an article in the Today’s News Herald dated March 6, 2016. She said the Site Six building, which was built by Mr. Robert McCulloch in 1960, is in serious disrepair and is in need of renovation to preserve its historical heritage. She questioned how many residents and tourists would visit or use the proposed site, and asked if there was an economic feasibility study done. She said the City should lease the land to a private developer like the English Village site, which was not considered historically important enough to secure the land for private entrepreneurs for development that would derive tourism revenues and provide the site for use of events for citizens and tourists enjoyment. She noted that Lake Havasu City Page 1 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 the City has already spent $60,000 on the proposed design drawings for Site Six and currently has budgeted over $100,000 for further development of the site. She asked if the City is in the business of running the site or developing this type of improvement. She wondered who will benefit from this $3 to $4 million project. She said the necessary upgrades should be made to preserve the historical aspects of the site, but urged the Council to let an entrepreneur develop the site to see if it is economically feasible. She said there are many worthwhile projects that would be better served by the $3 to $4 million dollars for the city’s residents and youth. Ms. Frankie Lyons addressed the Council and said she is President of the Veterans United Arizona. She wondered why the City has not reached out to community and corporate businesses to volunteer their time and materials to renovate the building. She said there is a lot of history in Lake Havasu City, and Site Six was a recreation and relaxation stop for veterans to recoup before flying out. Ms. Lyons said she thinks it would behoove the City to reach out to the community. She added that long-term maintenance needs would also need to be taken into consideration. Mr. Lee Nigg addressed the Council and said he is a local math teacher and while listening to the presentation he calculated that a $3 million building, with $1,300 a month in rental income, would take 192 years to recoup the costs. He said the building would probably be redone or tore down before 192 years. Mr. Nigg said the City is looking to spend $100,000 just to build the plans; however, if the City were to move forward with these plans and never build it, the City will have wasted $100,000 that could go towards other projects. He said the current fields need to be fixed. Mr. Nigg said there are safety issues on the fields, and while the City does not need to rush into building a sports complex we also cannot wait five or more years to build fields because there are people moving due to the lack of fields here. Ms. Brooke Vetter addressed the Council and said she was originally upset to hear that there was any talk about doing something before the fields; however, after listening to the proposal she was even more shocked to hear that this is something that the Council is considering because $3 million is a lot of money to spend to save a wall. She said the Site Six building could use some help but more parking and boat ramps is what she thought would be discussed today not just a building. Ms. Vetter invited the Council to the Little League Opening Day on Saturday, March 12, 2016, at 9:00 a.m., at SARA Park. Mr. Pat Irvine addressed the Council and said the demolition cost for the Site Six building was listed between $112,000 and $120,000. He said if the City is so “hell-bent” on the building they should move forward with the demolition to get the asbestos and lead out of the building and then “moth ball” it for $120,000 because the City does not have $3 million to put into this project. 6. CONSENT AGENDA 6.1 ID 16-0623 Approve the February 23, 2016, City Council Regular Meeting Minutes Lake Havasu City Page 2 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 6.2 ID 16-0558 Adopt Resolution No. 16-3016 Approving Amendment No. 1 to the Intergovernmental Agreement with Mohave County regarding Housing Rehabilitation Services 6.3 ID 16-0619 Adopt Resolution No. 16-3027 Abandoning the Northerly 5-foot by 136.45-foot Portion of a 10-foot by 148.92-foot Public Utility and Drainage Easement Along the Southern Property Line of Tract 2238, Block 3, Lot 42 / APL Surveying, Inc. 6.4 ID 16-0628 Adopt Resolution No. 16-3028 Abandoning a 5-foot by 125-foot Portion of the 10-foot by 125-foot Public Utility and Drainage Easement Along the Northwestern Property Line of Tract 2218, Block 6, Lot 8 / APL Surveying, Inc. 6.5 ID 16-0616 Recommend Approval of a Special Event Liquor License Application for the Desert Storm VIP Hospitality Welcome Party on April 27, 2016, at 1766 West Acoma Boulevard / Salscheider 6.6 ID 16-0615 Recommend Approval of a Special Event Liquor License Application for the Desert Storm VIP Tent Event on April 28, 2016, at 2119 McCulloch Boulevard / Salscheider 6.7 ID 16-0617 Recommend Approval of a Special Event Liquor License Application for the Desert Storm Power in the Park Festival on April 29 & 30, 2016, at 1400 South Smoketree / Salscheider 6.8 ID 16-0622 Call for Executive Session Pursuant to A.R.S. 38-431.03(A) 5:00 p.m. Tuesday, March 22, 2016 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, Councilmember Brister-McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 16-0620 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. Lake Havasu City Page 3 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 7.2 ID 16-0621 City Manager's Report City Manager Charlie Cassens reported on the following: • GFOA Distinguished Budget Presentation Award. Congratulations to Cassandra Clow, Senior Budget Analyst, and the Administrative Services Department for this achievement. • The Wings, Wheels and Waves open house at the airport was very successful with attendance reaching approximately 9,000 on Saturday. • Registration for Teen Break is open at the Aquatic Center for youth currently enrolled in sixth through twelfth grade. Teen Break will be held at Rotary Community Park Tuesday, March 22 through Thursday, March 24. • Code Enforcement Updates. There are currently 40 active and open cases. • Building Permit Updates. • Special Event Updates: o March 11-13, 2016 – The Colorado River Celebration with Will Graham at SARA Park Rodeo Grounds o March 12, 2016 – 7th Annual Denise’s Day (Fight Against Cancer) at Springberg-McAndrew Property on McCulloch Blvd. from 4:00 p.m. to 10:00 p.m. o March 17, 2016 – Snowbird Beach Park at Rotary Park, Ramada A, from 2:00 p.m. to 7:00 p.m. o March 19, 2016 – Walk MS to take place on The Island Trail from 9:00 a.m. to 12:00 p.m. o March 19, 2016 – The Havasu Triathlon at State Beach Windsor 4, the Channel, the Island, and various streets from 7:30 a.m. to 12:00 p.m. o March 19-20, 2016 – Spring Break Concert Under the Bridge from 1:00 p.m. to 11:00 p.m. 8. PUBLIC HEARINGS 8.1 ID 16-0624 Amendment No. 1 to Lease Agreement dated March 21, 2006, with the Chamber of Commerce, Convention and Visitors Bureau, and the Partnership of Economic Development Community Investment Director/City Engineer Greg Froslie advised that this item is an amendment to an existing lease agreement with the listed agencies. He said the agreement expires later this month and includes an option to extend the lease. He said staff recommends approval of the amendment to extend the lease agreement for an additional five years. 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 Callahan moved to approve Amendment No. 1 to the Lease Lake Havasu City Page 4 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 Agreement dated March 21, 2006, with the Chamber of Commerce, Convention and Visitors Bureau, and the Partnership for Economic Development extending the lease term for an additional five years, seconded by Councilmember Barlow, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember Barlow, Councilmember Brister-McCoy, Vice Mayor Callahan, Councilmember Sheehy and Councilmember Lin Recused: 1 - Councilmember Coke 8.2 ID 16-0626 Adopt Ordinance No. 16-1143 Approving a Major Amendment to Approved Planned Development No. 11-00200003 CRW/CR/PD (Channel Riverwalk/ Commercial Residential/ Planned Development); Adopting a New General Development Plan for an 8.52-Acre Parcel to Include: the Subdivision of 2.98 Acres, a 123 Unit Hotel (Phase I), the Addition of 50 Hotel Units (Phase II), the Elimination of One 75 Unit Condominium Tower, the Elimination of 3 Mixed Use Buildings Including 12 Residential Units, the Reduction of the Marina to No More Than One Acre, the Reduction of 57 Boat Slips; and the Modification of Three Approved Conditional Use Permits For Dredging, Docks For Boat Mooring, and a Marina Senior Planner Stuart Schmeling advised that this item is an amendment to an approved Planned Development (PD) from 2011 and is located at 501 London Bridge Road, more commonly known as the English Village property. Mr. Schmeling listed the existing entitlements as follows: • 3-eight story residential condos (215 total units) • 6-three story buildings (24 residential units) • Pedestrian plaza minimum width 40 feet • Pedestrian access easements/view corridors • Height exception (15.67 feet above 60 feet) • 3 ZUP’s o 1.66 acre marina o Dredging activities o 142 boat slips for mooring Mr. Schmeling showed a picture of what the development would have looked like had it been developed and also a picture of the proposed development plan submitted by the applicant. Mr. Schmeling explained that Phase I of the project includes a 123-unit hotel, with typical amenities associated with a hotel; including a restaurant, meeting rooms, pool area, and court. He noted that it will also include a different dock configuration than originally approved. Mr. Schmeling Lake Havasu City Page 5 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 explained that Phase II of the development calls for an additional 50 units, and Phase III, which is overlaid on the site plan, includes two previously approved condo units (a 75-unit and 65-unit), and the three buildings that will remain for entitlements of Phase III in the event it occurs. Mr. Schmeling explained that there were also pedestrian easements and corridors with the original approval, and many will be carried over with Phase III, but noted that Phase I is entirely different than the original plan. He said the new entitlements will be explained as he further outlines the new proposal. He said the walkways changed in the new proposal, and in Phase I they are leaving the riverwalk with minimal change. Mr. Schmeling said in Phase III the marina will be reduced from the original 1.66 acres to no more than an acre, with the boat slips reduced from 142 to 85. He further explained that Phase I also includes a subdivision to divide off Phase I and II from Phase III. Mr. Schmeling said the hotel and accessory uses are permitted uses in the CRW district. He noted that the proposed height of the building is 32.35 feet above the benchmark elevation, which in this district is 60 feet, and are well within the height and are not asking for a height exception for Phase I or Phase II. Mr. Schmeling listed the proposed entitlements as follows: • 123-unit hotel and 50 unit addition • 2-eight story residential condos (140 total units) • 3-three story buildings (12 residential units) • Pedestrian plaza minimum width 40 feet • Pedestrian access easements/view corridors Phase III • 3 ZUP’s o 1.00 acre marina o Dredging activities o 85 boat slips for mooring Mr. Schmeling noted that the ordinance within the council packet was revised due to late requests from the applicant. He said the City agreed to the changes and has provided the Council with a revised ordinance reflecting those changes. Councilmember Sheehy asked if it included 12-residential units per 3-story building or a total of twelve units, to which Mr. Schmeling replied that it was 4-units per building, and there were six buildings. Councilmember Sheehy asked Mr. Schmeling for further clarification on the two 15-foot pedestrian access easements, to which Mr. Schmeling explained that originally the City requested pedestrian access easements in the right-of-way to the Channel because with the condominium project as originally proposed, the City needed not only view corridors but also public access Lake Havasu City Page 6 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 through the condominium development. He said often times when a condominium project develops the first thing they want to do is gate it off and the City did not want to restrict pedestrians access to the Channel. He said with the new development plan, at least through Phase I, there will be public space and access to the Channel; therefore, as a result, the easements will change. He said the City will still request the 40-foot easement along the Channel but there will be additional easements should the proposed development be approved. Ms. Darin Sender, with Sender Associates, addressed the Council and introduced Mr. Bill Synders and Mr. Bill Spresser, with VRE English Village, LLC/Development Team, as well as Ms. Jen Boblick, with Sender Associates. She thanked City staff for their effort and time in this project. Ms. Sender said they understand the special nature of this property. She said Mr. Spresser has been in this community for many years and added that she has been visiting Lake Havasu City for many years as well. Mr. Bill Synders, with VRE English Village, LLC, addressed the Council and said they are the developers of the property. He added that they are extremely appreciative of Mayor Nexsen, the City Council, City Manager Charlie Cassens, and City staff for their assistance in moving this forward and are looking forward to approval tonight. Mayor Nexsen said one question that he is asked is what will happen to the other piece, to which Mr. Synders said at this time their objective is to build the hotel and bring that to completion, and added that they believe this will be a catalyst for the rest of the site. He said, do they ultimately believe they will end up with the condo buildings and marina, no probably not, because they are not generally a development company, but they do believe that at the end of the day they have the best interest of Lake Havasu City at heart relative to what is going on at this site. Mr. Synders said their goal is to build a successful hotel and look at the remaining land and determine what would be the most appropriate development for that site. He said he thinks there will be some type of condominium development, but to the level of the original development plan, probably not, nor does he believe that they will end up with a marina that is as large as what was originally planned. He said the reason he says this is because they started with the three condo towers and a much larger marina and that development plan has already changed, and while he would love to give the Council and the public an idea of the next phase of the English Village development, they will have to wait and see what occurs with the development of the hotel and tackle the second phase with the same approach, which is to build a really nice development that is accretive and beneficial to the Lake Havasu City community. Mayor Nexsen asked if it would be fair to say that the reason they did not ask for changes in the Phase II or III development is because at this time they do not know what the plan is, to which Mr. Synders said yes. Councilmember Lin said the citizens are concerned that the hotel does not keep the English Village Lake Havasu City Page 7 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 look or feel and asked if they could explain how they plan on incorporating the English Village aesthetics, to which Mr. Synders showed a rendering of the proposed hotel. He explained that they have talked about creating an area around the bottom of the hotel that is either a resemblance or more emblematic of the English Village theme. He added that it will also have the same color as the London Bridge with the stone effect to try and make that connection to the English Village feel. He noted that there are other colors portrayed as well to provide a contemporary and inviting feel; however, they will incorporate some of the aesthetics of the English Village and London Bridge to the lower aspect of the hotel and in the interior lobby, bar, and meeting rooms they plan to incorporate photos and history of Lake Havasu City and the English Village. Ms. Sender said the rendering of the lower half of the building does not really do it justice. She said there is actually a materials board that was brought before the Design Review Board Hearing and added that the Design Review Board meeting for this project will be held on March 22nd. She said the design has a much richer feel of the bridge. Mayor Nexsen asked if they have any color restrictions from Hilton, to which Mr. Synders said that Hilton does have an influence; however, at this point they have not indicated any color restrictions. He said Mr. Spresser and the design team really worked hard in bringing the London Bridge theme to the interior of the hotel as well. Mr. Cassens added that the design team from the very beginning expressed an interest in incorporating design features of the English Village into the lighting and fixtures. He said the idea is to have a beautiful and modern hotel with design elements that will complement the bridge. Mayor Nexsen opened the public hearing. Ms. Klostermeier addressed the Council and said she was pleased to see that the height has been reduced and also the use of similar bridge materials to complement the London Bridge. She thought it would be nice if they would incorporate an English flare to the design itself. She has been an avid proponent of the “Save the Village” for a number of years, and she hoped that the City would have save the integrity and beauty of the English theme for the village site and the community. She said looking over the proposed plan, she was also grateful to see that they were opting out of the condominium complex; however, tonight she heard that it may be a part of Phase II. She said she is grateful that they kept the village and its integrity intact so tourists can see the village as it would also lend a benefit to tourists and tourism to utilize the hotel and possibly work with VRE to plan various special events in the area. She said she is disappointed that the pictures did not depict more of an English theme. She said she was hoping that this could be one of Hilton’s classic types of hotels, one in which would promote the Hilton Hotel to have an outstanding theme and flavor, something different and unique. She said while the City cannot tell an owner what to build, we can certainly express our concerns as residents. She said what the residents are asking for cannot be much more, and if incorporated now, it may minimize costs. She urged the Council to use their influence to retain the beauty, history, and uniqueness of the crown jewel of the city, the Lake Havasu City Page 8 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 English Village. Vice Mayor Callahan asked Ms. Klostermeier what is there today that makes it an English theme, to which Ms. Klostermeier said a lot of the English flare has been lost, but if you look at the pictures of the English Village you will see the color themes and style of the buildings which is more English in architectural design. She said they do not need to change the main hotel structure, but more architectural features can be added to give it more of an English flavor. Ms. June McGowan addressed the Council concerned about the lighting. She hoped that they would be able to incorporate lights identical to the ones on the London Bridge. Councilmember Sheehy asked if the fountain, the Visitors Center building, the gates, and the common parking areas would remain, to which Mr. Synders replied yes. Councilmember Sheehy added that the landscaping was really not depicted in the pictures presented tonight; however, there is a nice grass area and a block wall for a natural seating and gathering area. He complemented VRE for all the work they have done and said they have been a pleasure to work with so that the heritage of Lake Havasu City is not forgotten. There being no further comments, Mayor Nexsen closed the public hearing. Councilmember Barlow moved to adopt Ordinance No. 16-1143 approving the proposed General Development Plan including a 123 unit hotel and a 50 hotel room expansion; amending the existing plan with the elimination of one 75-unit condominium tower, three commercial buildings; and modifying the conditional use permits reducing the marina from 1.66 acres to 1.00 acres; and reducing the number of boat slips to 85, seconded by Vice Mayor Callahan, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Brister-McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.3 ID 16-0629 Introduce Ordinance No. 16-1144 Amending Lake Havasu City Code Chapter 3.10, Procurement, To Clarify When Contract Amendments Require City Council Approval and Clarify the Scope of Contract Amendments Purchasing Supervisor Kimberly Fiumara advised that in 2015 the Council adopted the procurement section of the City Code. She said as this section has been implemented there are sections that seem contrary to the intent of the Code and almost contradict within the same section; therefore, staff has clarified and amended those sections within this ordinance. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Lake Havasu City Page 9 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 Councilmember Coke moved to introduce Ordinance No. 16-1144 amending Lake Havasu City Code Chapter 3.10, Procurement, to clarify when contract amendments require City Council approval and clarify the scope of contract amendments, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Brister-McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.4 ID 16-0625 Introduce Ordinance No. 16-1142 Amending Title 5 of the Lake Havasu City Code to Add a New Chapter 5.20, Vacation Rentals Mr. Froslie acknowledged Code Enforcement Officer Luke Morris who was in attendance to help answer questions from the Council on this topic. Mr. Froslie provided a Power Point presentation that reviewed the following: Background Information • The current City Code is silent on this issue • August 2015, Council directed staff to review how other communities deal with Vacation Rentals • Staff brought options for Council consideration at an October 2015 Special Meeting • Proposed code is based on Council direction from that meeting Neighborhood Impacts How the neighborhood impacts are addressed: • Number of people is not appropriate for the home o Occupancy limit tied to number of bedrooms (allows a base of 2 then an additional 2 per bedroom) • Noise – parties, loud music, etc. o City noise ordinance applies • Parking o Same as residentially zoned property • Trash o Put at curb no sooner than 12 hours before pickup time • No business license and not paying taxes o License and taxes required if rented for less than 30 days o Tax is 5% to Lake Havasu City and 5.78% to State/County • Who does a neighbor contact with an issue? o Local contact person available 24/7 to respond to complaints within 45 minutes o Neighbors within 300 feet are provided the local contact person’s contact information o No response in a timely manner = $1,000 fine to owners Lake Havasu City Page 10 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 • Provide a “Good Neighbor Brochure” to renters • All advertising must provide City license number • Revoke license if more than two violations in a year • $2,500 fine if not timely licensed Public Outreach & Education • Frequently Asked Questions (FAQ) on website o Rental rules and clarification of common misconceptions • Create and distribute “Good Neighbor Brochure” o Provides information on the standards o Renters receive copy of rules • Identify properties that do not have licenses o Research through reservation websites o Contact owners and educate them about required licenses • Enforce the standards and requirements o Local contact person to respond to complaints within 45 minutes o Additional enforcement through Administrative Services Department, Community Investment Department, and Police Department Upon request by Councilmember Lin, Mr. Froslie noted that he would provide the Council with a draft copy of the “Good Neighbor Brochure.” Councilmember Lin asked who would oversee the 24-hour hotline, to which Mr. Froslie said he would envision it to be the dispatch center at the Police Department. Councilmember Lin asked if the 24-hour hotline would be responsible for contacting the on-call person, to which Mr. Froslie replied yes that is one scenario. He explained that neighbors within 300 feet will have the contact information for the on-call person; however, if a homeowner falls outside the 300 foot radius then they would most likely contact the Police Department who will have the contact information. Councilmember Lin asked if the response time could be changed from 45 minutes to 30 minutes, to which Mr. Froslie stated that the timeframe could certainly be changed if that is the Council’s desire. He noted that the 45 minute timeframe was taken from a very successful program in Palm Springs, California. Councilmember Lin asked if there was a specific place homeowners would be required to display their business license certificate, to which Mr. Froslie stated that the idea is that they would have the certificate inside the house for the renters to see and neighbors within a 300 foot radius would receive that information with the contact information. Councilmember Lin asked who was tracking down and overseeing all the rental property owners in the city, to which Mr. Froslie said the Administrative Services Department would be administering Lake Havasu City Page 11 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 the program by issuing registration and business license certificates. He added that they are currently researching existing websites and making contact through notices. Councilmember Lin was concerned that the $1,000 fine was too low and requested that the fines be increased. Mr. Froslie noted that this item is to introduce the ordinance and staff is open to changes that the Council would like to make before bringing it back for final adoption. Councilmember Lin asked what would stop a property owner with a revoked license from continuing to rent their home, to which Mr. Froslie said as it stands, if the license is revoked and they continue to operate without a business license, the property owner would be subject to a $2,500 fine. Mr. Cassens added that violators who continue to operate would have to appear before a judge in court. Mayor Nexsen said Section 5.20.010 (B), Applicability, should state “further regulate” instead of “regulate” because the City already regulates hotels. Mayor Nexsen said Section 5.20.020, Definitions, the definition for “Good Neighbor Brochure” should state a document “approved by the City Manager” instead of “prepared by the City Manager.” Mayor Nexsen said he was trying to figure out why the City would need a hotline, but now understands that it would be used as more of a “last resort” because the City is hoping that the on-call person is contacted first. Mr. Cassens added that when a frustrated neighbor has to contact the hotline that is the point when the clock starts because if a citation follows it is helpful to have that information logged in the CAD system at the Police Department. Mayor Nexsen said Section 5.20.050 (B), Vacation Rental Registration Requirements, states “the Vacation Rental application shall be accompanied by a fee established in accordance with City Code Chapter 3.20.” He asked if this is the business license fee or an additional fee, to which Mr. Froslie replied that staff is proposing no fee on the application because they are already paying a fee for the business license. He added that in the future if it is decided that a fee for the application is appropriate then it would be added to the fee section within the City Code. Mayor Nexsen said Section 5.20.060 (G), Operational Requirements and Standard Conditions, states that “the owner’s agent, representative, or owner shall enter into a written rental agreement with a Responsible Person…(3) requires the Responsible Person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the Vacation Rental or their guests with all provisions of this Chapter and the Code.” He asked who becomes responsible if the renter or “responsible person” does not agree to those terms and fails to sign the agreement, to which Mr. Froslie said ultimately someone would be responsible and if the responsible person or renter did not sign the agreement then the responsibility would fall on the owner. Councilmember Sheehy Lake Havasu City Page 12 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 added that on some of the online platforms the terms and conditions can be adjusted and required by the person, or like a hotel they sign a registration card that covers that language. Mayor Nexsen said what he is getting at is that the responsible person understands what they are agreeing to and that they are legally responsible for all the occupants. He wondered if staff needed to add additional language that indicates that if they do not agree to it then the responsibility falls on the owner. Mayor Nexsen said Section 5.20.060 (H)(1)&(2), Operational Requirements and Standard Conditions, states 1) “In-person contact within forty-five minutes of a call from the Hotline if contact with the Responsible Person is not made by telephone for each incident during a Rental Term” and 2) “Report back to the Hotline of the disposition and handling of the reported incident within forth-five minutes of each call from the Hotline.” Mayor Nexsen asked what happens if the neighbor never called the hotline and dealt directly with the contact person, and further asked if they have to contact the hotline to let them know there was a problem and it was resolved. He said the section should state “only if the Hotline was used” or something similar so that neighbors do not report an incident to the hotline that was resolved through the contact person. Mayor Nexsen said Section 5.20.070, Audit, states that “Each Owner, or Owner’s Agent, shall provide access to each Vacation Rental and any records related to the use and occupancy of the Vacation Rental to the City Manager.....” and suggested that “or his designee” be added to that section. Mayor Nexsen said he was also questioning the 45 minute response time; however, his concern was that if someone gets a call early in the morning they need time to get dressed and drive across town. He noted that this process, including the response times and fines, can be adjusted after implementation should the Council want to make changes based on results they are seeing. There was discussion regarding response times from property owners who live out of state. Mayor Nexsen said property owners need to find a responsible contact person that can resolve an issue quickly. He added that if owners live out of state, they will have to do what others do, and that is; find someone to manage the property for them. Councilmember Sheehy said for clarification the 45 minute timeframe is not that they have 45 minutes to respond to an issue, but that they have to respond and have the issue resolved within 45 minutes. Mayor Nexsen opened the public hearing. Ms. Patti Mentch, Chairman for the Property Management Group, addressed the Council and said after reviewing the proposed draft regulations they suggest the following changes for the Council’s consideration: Lake Havasu City Page 13 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 • Page 2, Definitions, under “Vacation Rental”, changing twenty-nine consecutive days or less to thirty consecutive days or less to align with the Arizona Department of Revenue (ADR) definitions. • Page 3, under Vacation Rental Registration Requirements, changing 300 feet to 100 feet. • “Good Neighbor Brochure” would like to offer input and add anything that the property management groups think would be helpful. • Page 5, under (G) Operational Requirements and Standard Conditions, clarify that the responsible person is the person that signs the written vacation rental agreement, and who the property management groups address any issues or concerns with when it comes to that property. Mayor Nexsen said he assumed that the responsible person would be the manager or on-call person. He asked if the ordinance is defining the “responsible person” as the renter or the on-call/property manager, to which City Attorney Kelly Garry said the responsible person is defined as “an occupant of a Vacation Rental who shall be legally responsible for compliance of all occupants of the unit and their guests with all provisions of this Chapter and this Code.” Mayor Nexsen said he is concerned about how “responsible person” is defined only as the renter of a property, and thought the ordinance should also state that if a renter refuses to take responsibility and the rental goes through anyway then the owner takes the responsibility. Mr. Morris added that Page 6, Violations, states that “Any person who uses, or allows the use of, residential property in violation of the provisions in this Chapter is guilty of a misdemeanor for each day in which the residential property is used, or allowed to be used, in violation of this Chapter…” He noted that this covers the occupants, users, and property owners in the violation process, and added that the idea is to cite the property owner. Mayor Nexsen said he could see a scenario where the renter refuses to sign the agreement, to which Ms. Garry said in Section 5.20.040, Agency, it states “Except as provided in Subsection B of this Section and notwithstanding any agency relationships between an Owner and an agent or representative, the Owner of the Vacation Rental unit or units shall remain responsible for compliance with the provisions of this Chapter and the failure of an agent to comply with this Chapter shall not relieve the Owner of the Owner’s obligations under the provisions of this Chapter.” She said the City has tried to make it clear that the owner is ultimately responsible for failure to comply and any violations. Ms. Kelly Meister addressed the Council and said she was concerned that the 45 minute response time was too long. She added that she would prefer the radius be kept at 300 feet versus 100 feet. She also questioned the ratio of bedrooms to occupants allowed per household, and wondered who would regulate the number of occupants. Mr. Froslie clarified that the code would allow two people per bedroom, plus a base of two. Mayor Lake Havasu City Page 14 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 Nexsen said for example a three bedroom home with a casita would allow eight plus a base of two, for a total of 10 occupants. Ms. Meister asked for the Council’s consideration of increasing the fines to $2,500 for the first violation, and $5,000 for the second violation. Mayor Nexsen said while increasing the fines is possible, he suggested that the Council wait to see whether the fines work or if they need to be changed. He said the whole idea is for the City to get compliance and get people to recognize that they are in residential neighborhoods. Ms. Elizabeth Ward addressed the Council and said she has a Vacation Rental by Owner (VRBO) and likes everything that the City is imposing; however, she is not comfortable with giving her contact information to all the neighbors within a 300 foot radius of her vacation home because her VRBO is right next door to her home. She added that should something happen, like a fight or worse, she does not think it should be her responsibility to enter. She said if there is an over flood of people that you did not anticipate would be there, she thought it was unfair to ask the owner to handle it. Mayor Nexsen said most of the time calls are in regards to a loud party and they need to be reminded of the rules; however, if someone feels that they are in harm’s way then they need to absolutely call the Police Department to handle it. Ms. Ward said she would be comfortable with giving the number to call with the rental information, but not her personal information. Mr. Phil Annette addressed the Council and said he found it interesting that a handful of people can raise such a change in policy, with a new “Good Neighbor Brochure” and hotline. He said as quickly and decisively as the City has moved forward on this issue, even if they would have taken baby steps with the parking issues a few months ago, it would have shown a little more sign of progression and progressiveness in our City. He said such a small portion of the vacation rental issue can grow and stir an adoption in policy, but the trash and cars around town basically gets no credence. Mr. Annette said he thinks the City is trying to create a policy that he believes the City is going to find very difficult to administer and enforce. He said if a home next to him is creating a disturbance he calls the police, and said he does not understand why the City needs a policy other than to have some mechanism to collect the Transaction Privilege Tax (TPT). He said the City is going to be chasing around property owners who are operating without a license. He said he sees this as a step in the right direction, progressive in all areas, but it should not be something that the City cannot enforce that does not have enough teeth. He said the City has a lot of work to do before this can be administratively and effectively managed. Mayor Nexsen said for clarification this issue has been brought before the council since 2001, so it is not just a couple of people who brought this forward. He said the prior councils preferred to just Lake Havasu City Page 15 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 leave it alone but now it has got to a point where people were requesting that the City completely outlaw vacation rentals, but this Council did not feel that was a viable solution. He said there will always be people who want to cheat the system; however, when the City catches them they will be fined and when the “pocket book hurts” most people tend to comply. Mr. Annette said there also has to be a border line of not intruding on private property owner rights also because every owner is entitled to their peace. Mayor Nexsen agreed and said both homeowners are entitled to peace, and noted that the people using the vacation rentals are not the homeowners. Mr. Jerry Ketchum addressed the Council and thanked the City for taking action on this issue. Mr. Ketchum said he would like to see the radius kept at 300 feet so neighbors across the fairway at the golf course are also notified. He said he would like the Council to consider including something within the ordinance that addresses vehicles parked in the street for more than 48 hours. Discussion followed regarding complaints versus violations. Mr. Ketchum asked how the hotline will determine whether to call the police or contact person, to which Mayor Nexsen replied that it would depend on the nature of the call. He said there will be times where a contact person will be able to resolve the issue, and then there will be other times when the contact person feels that it is a public safety issue and police assistance is needed. There being no comments, he closed the public hearing. Councilmember Lin asked who is responsible for handing out the “Good Neighbor Brochure”, to which Mr. Morris said it will be the responsibility of the local property managers and property owners. Councilmember Lin was concerned about renters moving into a new home next to a vacation rental not receiving the information on who to contact if there is an issue. Mr. Froslie clarified that the “Good Neighbor Brochure” is an informational pamphlet that is given to the vacation property renters. Councilmember Lin asked who will be responsible for giving new renters or new homeowners the contact information regarding a vacation rental that is within the 300 feet radius, to which Mr. Froslie said monitoring new homeowners and new renters who have just moved in would be rather difficult to do. He said most likely any new renters or homeowners who are bothered by something occurring at a vacation rental would call the hotline. Councilmember Lin said she sees a loophole in the system in that if someone calls the hotline it is documented and, if founded, considered a violation; however, if someone just contacts the on-call person it goes undocumented and does not count towards a violation. Mr. Froslie said even if the Lake Havasu City Page 16 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 contact person is successful in resolving the issue every time, someone may get frustrated enough to contact the hotline so that it is documented. Councilmember Lin said she wanted to protect the vacation rental owner as well because there may be some neighbors who use the hotline as a way of getting rid of the vacation rental property next to them. Mr. Froslie noted that if the hotline is called regarding something like noise, the first call dispatch will make is to the contact person to try and resolve the issue. Mr. Cassens said there are a lot of rentals in the city that are not a problem. He said staff tried to craft an ordinance that gives some teeth for law enforcement officials to go after the chronic offenders without trampling on the rights of everyone else. He said he expects that the City may need to come back to fine tune things that may not be working quite right. Councilmember Sheehy said he would be in favor of changing the definition of vacation rental from 29 days to 30 days, to which Ms. Garry stated that under the City Tax Code transient is defined on a basis less than 30 consecutive days. She added that under the City’s Zoning Code, for hotels and motels, the City’s transient lodging is less than 30 days. She said when the City says 29 days or less, or less than 30 days, it is semantics, we are saying the same thing. She added that she can change the City Code to say less than 30 days but she does not want to say 30 days or less because then we are not in line with the City Tax Code. Councilmember Sheehy said he would like to keep it in line with the City Tax Code. Councilmember Sheehy said he was in favor of keeping the radius at 300 feet. Mayor Nexsen noted that 300 feet is the distance found within most ordinances out there. Ms. Garry added that 300 feet is also standard for the City’s zoning notifications and while in vacation rentals that will not be statutorily required, it will keep it consistent with the City’s other notifications. Councilmember Sheehy said he felt the penalties and ordinance as written are a great start to get compliance. There was a consensus from the Council to keep the fines and response times as written. Councilmember Sheehy moved to introduce Ordinance No. 16-1142 amending Title 5 of the Lake Havasu City Code by adding a new Chapter 5.20, Vacation Rentals, with the modifications requested by the Council, seconded by Councilmember Brister-McCoy, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Brister-McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.5 ID 16-0613 Award Bid for the Water Conservation Implementation Package No. 1 to Capital Improvements, LLC. Lake Havasu City Page 17 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 Engineering Division Manager Jeremy Abbott advised that this item is for the Water Conservation Implementation Package No. 1 Project. Mr. Abbott provided a Power Point presentation that outlined the following: Project Information • Design was Bureau of Reclamation (BOR) funded • Connections at Rotary and London Bridge Beach Parks • Upgrades to the Island WWTP Effluent Pump Station and Surge Tank System • Irrigation with A+ quality reclaimed water • Extensive Dye Testing of irrigation systems • Public Notification through the use of signage • 114,000 gpd (annual average day) • Actual production cost savings of $64,000 per year ($1.54 per thousand gallons) • Future water rights savings of $511,200 per/year (based on $4K/AFA) Mr. Abbott noted that most of the irrigation will be done at night and early morning hours. Mayor Nexsen opened the public hearing. Mr. Alan Miner, owner of Capital Improvements, LLC, a subsidiary of A. Miner Contracting, introduced himself to the Council. He said he is from Prescott, Arizona, and is looking forward to working in Lake Havasu City. Mayor Nexsen asked about the project timeframe, to which Mr. Abbott said the actual timeframe is 120 calendar days, with an expected start date around early April and end date in July. There being no comments, he closed the public hearing. Councilmember Callahan moved to award the bid for the Water Conservation Implementation Package No. 1 to Capital Improvements, LLC, in the amount of $434,600.00, seconded by Councilmember Barlow, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember Brister-McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 9. CURRENT EVENTS Councilmember Coke announced that the Entrepreneurial Outreach Network (ENON) will be holding a community kickoff event on March 15, 2016, from 5:00 p.m. to 6:30 p.m. at ASU. 10. FUTURE MEETINGS Tuesday, March 22, 2016 @ 6:00 p.m. – Regular Meeting Tuesday, April 12, 2016 @ 6:00 p.m. – Regular Meeting Lake Havasu City Page 18 Printed on 3/23/2016 City Council Minutes - Final March 8, 2016 Wednesday, April 13, 2016 @ 9:30 a.m. – CIP Work Session 11. FUTURE AGENDA ITEMS There were no requests for future agenda items. 12. ADJOURN Upon motion by Councilmember Barlow and seconded, the meeting adjourned at 8:05 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 8th day of March, 2016. 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 19 Printed on 3/23/2016