City Council

Mayor Mark S. Nexsen Lake Havasu City Vice Mayor Don Callahan Police Facility Councilmember Dean Barlow 2360 McCulloch Blvd North Councilmember Donna McCoy 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 8, 2016 6:00 PM 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 with 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 Donna McCoy, Vice Mayor 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 16-0977 Approve the October 25, 2016, City Council Regular Meeting Minutes 6.2 ID 16-0972 Adopt Resolution No. 16-3101 Abandoning the Northerly 5-Foot by 115-Foot Portion of the 10-Foot by 125-Foot Public Utility and Drainage Easement Along the Southerly Property Line of Tract 2251, Block 12 Lot 35 / Garry 6.3 ID 16-0975 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 4:30 p.m. Tuesday, November 22, 2016 Vice Mayor Callahan moved to approve the Consent Agenda as presented, seconded by Councilmember Barlow, and carried by the following vote: Lake Havasu City Page 1 Printed on 11/23/2016 City Council Minutes - Final November 8, 2016 Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 16-0968 Investment Report at September 30, 2016 Mayor Nexsen noted that the Investment Report was for informational purposes only. 7.2 ID 16-0976 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 16-0974 City Manager's Report City Manager Charlie Cassens reported on the following: • Sales Tax Updates. • The Arizona State Parks and Komick Enterprises have invited the public to attend a groundbreaking ceremony for Havasu Riviera and Contact Point State Park at 10:00 a.m. on Thursday, November 10, 2016. Following the ceremony, Arizona State Parks will hold the official opening and naming of the new boat ramp a Lake Havasu State Park. • Code Enforcement Updates. There are currently 33 active and open cases. • Building Permit Updates. • Special Events: o The Annual Veterans Day Parade will be held on Friday, November 11th beginning at 10:00 a.m. with the Veterans Day Ceremony immediately following at Wheeler Park. o The Annual Havasu Turkey Trot will be held on Saturday November 12th at the Island Ballfield and on the Island Path beginning at 9:00 a.m. 8. PUBLIC HEARINGS 8.1 ID 16-0953 Adopt Ordinance No. 16-1166 Amending City Code Section 2.56.111, Municipal Court Administrative Fee Schedule and Jail Cost Recovery City Attorney Kelly Garry stated this item was introduced at the last City Council meeting. She said the purpose of this amendment is to correct a discrepancy between the City’s fee schedule and City Code Section 2.56.111 related to the Consolidated Court’s warrant fee. Ms. Garry stated an increase in the warrant fee was approved last year; however, the City Code was not revised to reflect the change. She said the adoption of the Lake Havasu City Page 2 Printed on 11/23/2016 City Council Minutes - Final November 8, 2016 proposed ordinance will amend the warrant fee in the City Code from $50 to $125 making it consistent with the fee schedule. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to adopt Ordinance No. 16-1166 amending Lake Havasu City Code Section 2.56.111, Municipal Court Administrative Fee Schedule and Jail Cost Recovery, seconded by Vice Mayor Callahan, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.2 ID 16-0973 Adopt Ordinance No. 16-1168 Rezoning Tract 2307, Block 4, Lot 1, 2050 Kiowa Boulevard N., from C-2/PD (General Commercial Planned Development District) to C-2 (General Commercial District) Removing Lot 1 from the Adopted Planned Development Zoning Administrator Stuart Schmeling addressed the Council and stated this property is located generally on the corner of Kiowa Boulevard and Runabout Drive and the zoning to the surrounding area both to the north and west is zoned light industrial. Mr. Schmeling reviewed the approved General Development Plan for the existing PD to Council and stated that when the PD was adopted in 2003, the developer wanted to create some sort of access management with some shared parking. He added that several conditions were placed on that PD and most of those conditions were to mitigate or protect the neighbors to the south. Mr. Schmeling stated that most of those conditions would be addressed under the City’s new Development Code under the Neighborhood Protection Standards and what the intent of the owner or applicant would do is remove the property from the existing General Development Plan so they would not have to develop in compliance with the site plan. He stated the currently adopted General Plan Future Land Use Map suggests that this area is employment which would suggest an expansion of either light industrial or commercial activities and is in keeping with the current General Plan, and the soon to be ratified General Plan Land Use Map which also indicates this area as employment. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Callahan moved to adopt Ordinance No. 16-1168 rezoning Tract 2307, Block 4, Lot 1, 2050 Kiowa Boulevard N., from C-2/PD (General Commercial Planned Development District) to C-2 (General Commercial District) removing Lot 1 from the Adopted Planned Development, seconded by Councilmember Barlow, and Lake Havasu City Page 3 Printed on 11/23/2016 City Council Minutes - Final November 8, 2016 carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.3 ID 16-0963 Award Agreement for Construction Management Services for Tank 2A-06 Rehab/Replacement to Atkins Project Manager Ryan Molhoek stated he was before Council to present a one million gallon water storage tank plan for replacement near the intersection of Kiowa Boulevard and Havasupai Boulevard. He said this project would consist of removing the existing tank and foundation, constructing a new welded, sealed tank and foundation, and an aluminum roof. He said the project would take 180 days and would end in approximately May. Mr. Molhoek stated that this contract is to award the bid to Paso Robles Tank in the amount of $1,126,542.00. Mr. Molhoek stated that the existing tank needs to be replaced due to some serious failures. He reviewed those failures for Council and stated that after staff looked at the benefits and the pros and cons, they decided to bid it out to determine if it should be a rehab project or completely remove the old tank and install a new one. He stated ultimately, staff recommends the new option with an aluminum roof. Mr. Molhoek added that the consultants performed some life cycle cost analysis and other analyses that staff reviewed with Administrative Services that backed up their opinion that essentially over the life of the tank the cost difference becomes more or less a wash. He stated there is a marginal expense for doing the aluminum roof versus the steel roof, however, that cost difference would be covered in the first recoat of the tank because the aluminum roof of the tank would not need to be coated. Mr. Molhoek reviewed the following for Council: Reduced Risks vs. Rehabilitation Option • Safety during construction o Maintaining shell while performing other work • Reduced storage volume (43,450 gallons) • Roof connections • Life of remaining items (shell, retaining ring) • Foundation uncertainty • Financial risk of postponing replacement (market) Mr. Molhoek stated with all of those variables, staff recommends the installation of a new tank with an aluminum roof. Lake Havasu City Page 4 Printed on 11/23/2016 City Council Minutes - Final November 8, 2016 Vice Mayor Callahan asked if staff had included this project in the budget, to which Mr. Molhoek replied that it was included and approved in the budget. In response to Councilmember Lin’s question, Mr. Molhoek explained that the existing tank has exhibited failures that are not typical of tanks and the life expectancy of the new tank would be 60 years. Councilmember Barlow stated the life expectancy of 16 years to 60 years is a big difference and wondered if the failing tank was inferior. Mr. Molhoek stated that there was probably a myriad of things but one of the critical things is the types of coating used and how the coating was applied. He said because the steel material as well as the welds and connections are in a wet environment, once those coatings are exposed, the water wreaks havoc on the steel. Councilmember Sheehy asked if the City has done work with this company in the past and if staff was happy with their work. Mr. Molhoek stated that Paso Robles completed installation of new tanks at the end of 2015 and staff was happy with their work. Councilmember Barlow asked if the existing tank is in such poor condition in 16 years, if there was a warranty on the work that was done. Mr. Molhoek stated unfortunately, warranties do not extend to that time frame. He added there were a myriad of variables that went wrong with this tank. Mayor Nexsen asked if the variables that existed on the old tank will exist on the new tank, and can the City only expect a 16 year versus 60 year life expectancy on the tank. Mr. Molhoek stated there has definitely been some improvement in coatings but the bigger issue is ensuring that the specifications and requirements are all met, particularly with the coating application. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to award the Base Bid for the Tank 2A-06 Rehab/Replacement project to Paso Robles Tank – Brown Minneapolis Tank, Inc., in the amount of $1,126,542.00, seconded by Vice Mayor Callahan, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 8.4 ID 16-0964 Award Bid for Tank 2A-06 Rehab/Replacement to Paso Robles Tank - Brown Minneapolis Tank, Inc Project Manager Ryan Molhoek stated this request is to award a contract to Atkins for construction management services for Tank 2A-06 that was previously discussed. He said the contracted amount is $206,175 and is expected to be completed in 180 days. He Lake Havasu City Page 5 Printed on 11/23/2016 City Council Minutes - Final November 8, 2016 said this contract includes a full-time senior construction manager which means they will be on site with the contractor. Mr. Molhoek stated the other key item is that this contract requires special inspections including a sub-consultant that does very specific tank inspections particularly with regard to coating applications. He added that they would also provide project management throughout the project, attending project meetings, and processing project documentation in coordination with the City project manager. Councilmember Sheehy asked if there is any assurance by hiring this contractor that if the tank would fail within a few years that there is some sort of warranty or bond that the City can go after to recover any losses we may incur. Mr. Molhoek stated that is not in the construction management contract but there is a warranty and bond in the construction contract with the contractor performing the work. Councilmember Sheehy stated that with the current tank only lasting 16 years somebody has to have some responsibility for such a large project to make sure we get the full life span and this is the City’s tool to get there, but what assurances do we have that they are going to make sure that this project is done correctly. Mayor Nexsen asked who would be monitoring this project, to which Mr. Molhoek said he would be. Mayor Nexsen stated that he did not want to saddle the council in 16 years on another project that should have lasted 60 years. Community Investment Director Greg Froslie addressed the Council and stated this contract for construction management is a little different because it actually spells out the special inspections that are necessary and this firm is responsible to provide written reports to staff. He said the assurances are in the contract but are not necessarily in warranty, and added that there are certain steps that the manufacturer requires to be tested during construction which is included in the contract. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Barlow moved to award Agreement for Construction Management Services for Tank 2A-06 Rehab/Replacement to Atkins, seconded by Vice Mayor Callahan, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Barlow, Councilmember McCoy, Vice Mayor Callahan, Councilmember Coke, Councilmember Sheehy and Councilmember Lin 9. CURRENT EVENTS There were no council committee reports. 10. CALL TO THE PUBLIC There were no requests to address the council. Lake Havasu City Page 6 Printed on 11/23/2016 City Council Minutes - Final November 8, 2016 11. FUTURE MEETINGS Tuesday, November 22, 2016 @ 5:30 p.m. – Special Meeting Tuesday, November 22, 2016 @ 6:00 p.m. – Regular Meeting Tuesday, December 13, 2016 @ 6:00 p.m. – Regular Meeting 12. FUTURE AGENDA ITEMS There were no requests for future agenda items. 13. ADJOURN Upon motion by Vice Mayor Callahan and seconded, the meeting adjourned at 6:32 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 November, 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 7 Printed on 11/23/2016