City Council

Mayor Mark S. Nexsen Lake Havasu City Vice Mayor Jeni Coke Police Facility Councilmember Gordon Groat 2360 McCulloch Blvd North Councilmember David Lane Lake Havasu City, Arizona 86403 Councilmember Michele Lin www.lhcaz.gov Councilmember Donna McCoy Councilmember Cal Sheehy City Council Regular Meeting Minutes - Final Tuesday, July 25, 2017 6:00 PM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Katy Scott, Lake Havasu Church of the Nazarene There was no invocation given. 3. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Mark S. Nexsen, Councilmember Donna McCoy, Vice Mayor Jeni Coke, Councilmember Cal Sheehy, Councilmember Michele Lin, Councilmember David Lane and Councilmember Gordon Groat *Councilmember Donna McCoy was present via remote conferencing. 5. CALL TO THE PUBLIC There were no requests to address the Council. 6. CONSENT AGENDA 6.1 ID 17-1286 Approve the July 11, 2017, City Council Regular Meeting Minutes 6.2 ID 17-1281 Adopt Resolution No. 17-3162 Abandoning the 16-Foot Public Utility and Drainage Easement Along the Common Lot Line of Tract 2152, Block 6, Lots 5 & 6-A and the Dedication of a Public Utility and Drainage Easement Along the Westerly 16 Feet of Tract 2152, Block 6, Lot 5 6.3 ID 17-1283 Adopt Resolution No. 17-3163 Approving the Second Supplement to Trust Indenture and Joint Payment Agreement for the Lower Colorado River Multi-Species Conservation Program 6.4 ID 17-1287 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Lake Havasu City Page 1 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 Tuesday, August 8, 2017 Vice Mayor Coke moved to approve the Consent Agenda as presented, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 17-1284 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions City Clerk Assistant Sacia Graber announced the current vacancies on various Lake Havasu City Boards, Committees, and Commissions. 7.2 ID 17-1285 City Manager's Report City Manager Charlie Cassens reported on the following: • Maintenance Services crews began their annual underwater weed harvesting program in the Bridgewater Channel and Marina. • Mohave County has issued the Discharge Authorization for the bathrooms at the SARA Park Trailhead. • Havasu Youth Advisory Council is coordinating a celebration and volunteer activities for National Public Lands Day with the Bureau of Land Management to improve the SARA Park Trailhead on September 30th. • Registration for the After School Program is currently being accepted at the Aquatic Center. • The next Coffee with the Mayor and City Manager will be held at the Bagel Bin, 1960 Mesquite Avenue, #A on Friday, August 4, 2017, from 7:30 a.m. to 9:00 a.m. • Building Permit Updates Code Enforcement Planner/Code Enforcement Specialist Luke Morris reported on the current Code Enforcement statistics for Council: • 29 new complaints received • 25 cases closed • 28 initial complaint inspections • 36 re-inspections • 3 violation notices sent • 37 current open cases Mr. Morris stated although these statistics are reported at every Council meeting, staff Lake Havasu City Page 2 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 wanted to go behind the numbers and show the history and how the last fiscal year has ended. He said with the data staff has been compiling over the last three years, it illustrates new reports versus closed cases within the same time period. Mr. Morris reviewed FY 2014-15 through FY 2016-17 statistics and stated the average is approximately 14 new and closed cases per week which shows that the cases are getting closed as they come in. Mr. Morris reviewed the following for council: Complaint Types • Setback/Building – 16 % • Weeds – 13 % • Debris/Trash – 55 % • Junk Vehicle – 8 % • Other – 8 % Code Enforcement Philosophy • The focus of enforcement is on the nuisance, activity, or structure, not the nature or character of the violator. • Provide a chance to comply voluntarily and is usually done with a flexible, creative, and helpful approach. • Education and communication are keys to success. • Enforcement efforts are directed at providing opportunities for solving problems and eliminating violations, not punishing people. Code Enforcement Compliance Process • Receive Report • Field Visit/Contact – Education • One week to take care of it • Issue Violation Letter – 30 days • Two-week re-check – Reminder Notice • Final Notice or Extension Notice • Civil Citation/Criminal Case/Abate & Lien Mr. Cassens stated some of the reports staff receives are neighbor disputes, and added Mr. Morris and Code Enforcement Specialist Denise Raymond do a great job of sorting through what are real nuisance violations versus disputes. Councilmember Groat thanked Mr. Morris for his report and also thanked him for taking a suave approach as opposed to harsh and angry with code enforcement. He asked Mr. Morris if he had any idea regarding the growth and utilization of the mobile technology patterns. Mr. Morris stated the mobile app has been on line for over a year, but added the majority of the complaints are received through voicemail or email. He said the mobile Lake Havasu City Page 3 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 app is useful for feedback and also allows people to review information regarding the results of their complaints. Mr. Morris stated staff does not track cases through the mobile app but they do track them through the City’s internal H.T.E. software program. Mr. Cassens stated he receives reports on the HavasuNOW app and staff has processed approximately 500 reports that include anything from code enforcement, dripping fire hydrants, streets signs and various other reports. He said the app is free and can be downloaded from the app store on your mobile phone. Mr. Cassens stated the reports go directly to the departments and allows citizens to review the status of their complaint. Councilmember Groat requested that staff provide a copy of the report to Council. Mr. Cassens stated the reports are categorized and will show the trends and types of reports. 8. PUBLIC HEARINGS 8.1 ID 17-1251 Adopt Ordinance No. 17-1180 Amending Lake Havasu City Code Title 10, Vehicles and Traffic, To Add a New Chapter 10.24, Overdimensional and Overweight Loads City Attorney Kelly Garry stated this item was introduced at the last City Council meeting and is in response to new legislation that will go into effect in August. She said this ordinance adopts regulations similar to the State regulations but does not change any of the practices that are currently implemented by the Police Department with respect to these permits. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to adopt Ordinance No. 17-1180 amending City Code Title 10, Vehicles and Traffic, to add a new Chapter 10.24, Overdimensional and Overweight Loads, seconded by Councilmember Sheehy, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 8.2 ID 17-1294 Adopt Ordinance No. 17-1182 Rezoning APN 120-03-015, a 9 Acre Parcel from M1-P/PD (Light Industrial Planned Development District) to I (Industrial District) Zoning Administrator Stuart Schmeling stated the property is located in the northern end of the community just south of the airport along Victoria Farms Road. He said the original Planned Development (PD) included all the properties along the north side of Victoria Farms Road until recently when a 40-acre parcel was rezoned to Light Industrial (LI) and removed from the PD. Mr. Schmeling said the reason they are requesting the rezone to Industrial instead of LI is because the applicant is proposing a propane Lake Havasu City Page 4 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 distribution center which is considered a hazardous material. Councilmember Lane asked, because of safety concerns, how close the propane company would be to the RV Park. Mr. Schmeling stated it was approximately two miles. Mayor Nexsen noted that the RV Park is actually in an industrial area and the owners requested a conditional use permit to be able to locate in that industrial area. Mayor Nexsen opened the public hearing. Mr. Mychal Gorden addressed the Council as a representative of the applicant and said he was available to answer any questions regarding the rezone. Councilmember Groat stated it appears there is approximately one-quarter mile distance between the RV Park and the proposed propane distribution center. Mr. Gorden stated the parcels are 40-acre squares and the proposed distribution center is approximately three-fourths of a mile from the RV Park with a 40-acre industrial parcel between this action and an existing MI-P parcel that is undeveloped. There being no further comments, Mayor Nexsen closed the public hearing. Councilmember Sheehy moved to adopt Ordinance No. 17-1182 rezoning of APN 120-03-015 from M-1P/PD (Light Industrial Planned Development District) to I (Industrial District), seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 8.3 ID 17-1295 Adopt Ordinance No. 17-1183 Approving a Major Amendment to the Anderson Autoplex Planned Development 07-00200007 in the C-2/PD (General Commercial Planned Development) District to Change the General Development Plan for Lots 6, 11, and 12 from Car Dealerships and Retail/Restaurant to Storage Units Mr. Schmeling stated that the property is located in the north end of town, west of the highway, east of the airport and north of the mall. He said the General Development Plan was approved in 2007 and as part of that approval, layout of the individual buildings on each lot and the parking area were described for each of the uses. Mr. Schmeling stated lots six, eleven and twelve are the three lots in question, and said lot six is designated as a car dealership and lots eleven and twelve retail/restaurant. He stated the proposed General Development Plan (site plan) shows storage units. Mr. Schmeling said one of the conditions in the ordinance allowed all of the lots within that portion of the PD to build to Lake Havasu City Page 5 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 a 36-foot building height to accommodate car dealerships and the unique characteristics of their buildings. Mr. Schmeling stated that staff recommends, if Council does approve this specific use, the 36-foot building height should revert back to a 25-foot building height that is allowed in the C-2 District. He added the storage unit building heights proposed by the applicant are 18-feet, 6-inches. Councilmember Sheehy asked if the three lots would be exempt from the PD while the remaining lots would remain under the existing PD. Mr. Schmeling explained that the three lots are not exempt from the PD and still fall within all of the other specifications of the PD but will have different site plans. Councilmember Sheehy asked if the remaining lots would then still fall under the 2007 General Development Plan, to which Mr. Schmeling stated that was correct unless the owner requests an individual amendment. Mayor Nexsen asked if the other lots, other than lots six, eleven and twelve changed hands or are still owned by Mr. Anderson. Mr. Schmeling stated his understanding, based on the information that was stated at the Planning & Zoning Commission meeting, is that all of the lots have changed hands. Mr. George Sharma with Desert Rose Properties stated that he represents the buyers. He added that lots five through twelve are currently in escrow and lot four has been retained by the Anderson family. Mr. Sharma stated the plan is to develop the three lots with double wide, extra deep storage units meant for multiple toys. He said they would be more like a mini man-cave, would be insulated and would have independent power. Mr. Sharma stated the idea is to make the development like a hub and added he is already in negotiations with an RV dealership and boat dealership. Mr. Sharma stated the two parcels to the top of the border would be kept for a future fast food restaurant and lot five as a dealership. Mayor Nexsen asked, assuming the amendment was approved, how soon Mr. Sharma’s client would be developing the lots. Mr. Sharma stated it would be very soon. Mayor Nexsen said the reason he asked the question is because his understanding from the 2007 Development Agreement is that for every lot sold and developed, the length of the Development Agreement would be reduced by one year. He stated the Anderson’s spent approximately $3.9 million in infrastructure costs and deeded that to the City and was allowed to repay themselves through a one percent rebate on those taxes. City Attorney Kelly Garry stated that was correct and added, for each lot that is sold it reduces the payback period by one year. Mayor Nexsen noted that Mr. Anderson was not in attendance and stated that he is earning $300,000 a year to pay himself back which means he could lose between $600,000 to $700,000. Ms. Garry stated that was correct depending on the sales tax. Mr. Sharma stated Mr. Anderson was unable to attend due to health issues. Lake Havasu City Page 6 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 Councilmember Sheehy asked if the reduction in payback years was when the lot is sold or developed to which Ms. Garry stated sold and developed. Mayor Nexsen explained the Development Agreement was done in a way so that every time a lot was sold for retail, it would generate sales tax so Mr. Anderson would need less time to recoup his $3.9 million investment. He added that was the disincentive for selling it for other than retail because if it is sold for other than retail, he would earn nothing on those properties and would not be able to pay himself back. Mayor Nexsen opened the public hearing. Mr. Dean Baker, Owner and Broker of Lake Havasu City Properties, stated that he represents the sale of the properties for Mr. Anderson. He said Mr. Anderson developed that property over ten years ago and unfortunately the economy has changed over time. Mr. Baker stated that Mr. Anderson wants to move on and understands that he is going to lose close to $600,000. He stated that he has reached out to Costco, Trader Joes, Target and other big retail companies but they are not interested in coming to Lake Havasu City because of population concerns. Mr. Baker said he and Mr. Anderson are in favor of the project and encouraged the Council to vote in favor of the development. Mr. Tom Askland stated he has lived in Lake Havasu City for 26 years as a commercial builder and developer. He added that approval or disapproval of the amendment is only for that acreage involved and anything that they want to do in the future will have to come back to the City Council for approval. Mr. Askland stated he has developed three projects in town where he has put retail on the front and storage in the back. He said there is a need for this and recommended the Council move forward with the amendment. Ms. Rheatha Knight asked if building plans were available for viewing, to which Mayor Nexsen stated this action would be to approve the rezoning and that a design review would be conducted by staff at a later date. Mr. John Pelkey addressed the Council and stated he was in favor of supporting the project. Mayor Nexsen stated in response to Ms. Knight’s question, many times the owners do not know what they are going to build. He said in this case, they have an idea what they are planning, but assumed the drawings have not yet been completed. Mayor Nexsen asked if the Council could have a part in the final design approval, to which Mr. Schmeling stated that they would have that ability. Mayor Nexsen stated the reason he was asking that is he has had a number of individuals concerned that the first thing people are going to see as they drive into the city are storage units. He said, as Mr. Askland had said, the storage units could be behind retail so they are hidden with some beautification and landscaping. Lake Havasu City Page 7 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 Mayor Nexsen stated there has been a lot of talk about man-caves that have bathrooms, water, a kitchen area and asked if people can stay overnight in the units. Mr. Schmeling stated that they should not be staying overnight in the man caves but nothing prevents them from installing a bathroom. There being no further comments, Mayor Nexsen closed the public hearing. Councilmember Sheehy stated that he had read that the storage units would sit lower than the elevation from Highway 95. Mr. Schmeling stated that the pads have already been graded and their max grade has already been established. He said based on topography maps, those elevations sit approximately 18-feet below the centerline of Highway 95. Councilmember Sheehy noted that the development from the centerline of Highway 95 would be neutral as far as height and asked if somebody were to build these man-caves, if they would have to go through the building department for their permits so staff would know if there were sleeping quarters. Mr. Schmeling stated that was correct and noted it would be a different occupancy and different construction and sleeping quarters would be stopped at that point. Councilmember Sheehy stated at the Planning & Zoning Commission meeting, Mr. Sharma had stated the use would only be storage units for this proposed site and retail uses for the other aspects of the site. Mr. Sharma stated that was correct and added they have been in escrow on the property since February. Mayor Nexsen stated at the Planning & Zoning Commission meeting Mr. Sharma had also indicated the he had no intention of converting the other lots to storage units. He added the Council has heard from another realtor that said he cannot find anybody that wants those lots for retail and expressed concern that eventually somebody would turn those lots into storage units. Mr. Sharma said they would be constructing mini man-caves to attract the car and boat dealers. He said in this case, the gas station is already there and if you bring other businesses in that sell parts and toys, this development would be the focal point. In response to Councilmember Sheehy’s question Mr. Sharma stated they are proposing 77 doublewide units and would finish every building facing the highway with a complete stucco finish. Mayor Nexsen asked if there would be a wall around the entire property. Mr. Sharma explained it would be a mix of rod iron fence and would be maintained by the homeowner’s association. He added the empty lots between the highway and the proposed development would be developed by some type of dealership which will create an automatic barrier between the units and the public view driving on the highway. Mayor Nexsen asked if there would be landscaping on the outer edges of the development. Mr. Schmeling stated that it will have a screen wall around the perimeter with landscaping and a minimum 10-foot landscape strip along the right-of-way outside Lake Havasu City Page 8 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 of the wall. He added those things will be addressed in the design review section of the code. Councilmember Sheehy thanked Mr. Sharma for making an investment in the community and stated that he will hold him to the commitment that he will develop retail on the front end of the properties. Mayor Nexsen stated he is not thrilled that the first thing people will see coming into town are storage unit but said he would leave that up to Mr. Schmeling to come up with a design review that makes it look beautiful. He added that he is going to count on Mr. Sharma’s word that the other lots are not going to become storage units, to which Mr. Sharma stated “you have my word.” Councilmember Sheehy moved to adopt Ordinance No. 17-1183 approving a Major Amendment to the Anderson Autoplex Planned Development 07-00200007 in the C-2/PD (General Commercial Planned Development) District to Change the General Development Plan for Lots 6, 11, and 12 from Car Dealerships and Retail/Restaurant to storage units and reducing the maximum building height from 36 feet to 25 feet, seconded by Councilmember Groat, and carried by the following vote: Aye: 6 - Mayor Nexsen, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat Nay: 1 - Councilmember McCoy 8.4 ID 17-1278 Award Bid for the WAPA Zone 3 Water Main Project to Standard Construction Company, Inc. Assistant City Engineer Jeremy Abbott stated the Western Arizona Power Authority (WAPA) Zone 3 Water Main Project original construction budget was $1.2 million and the low bid came in at $823,110. He said staff refers to it as the WAPA Project because the water main is being constructed within the WAPA easement. Mr. Abbott stated that the project is two miles of main line, approximately 10,000 feet that will connect the water mains from Chesapeake Boulevard to McCulloch Boulevard. He added as part of the wastewater expansion program water main crosses were installed at approximately ten intersections along this alignment. Mr. Abbott stated the purpose of this project is to increase pressures within Pressure Zone 3 to meet minimum levels of service which is calculated by peak-day demand. He added staff also wants to ensure that they meet the current fire flow code and also create loop connections that will improve water quality and eliminate dead end runs. Mr. Abbott stated this is a four month project and is anticipated to be completed by January. He added staff has received approval from the Arizona Department of Environmental Quality and Mohave County to construct the water Lake Havasu City Page 9 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 main. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Coke moved to award the bid for the WAPA Zone 3 Water Main Project to Standard Construction Company, Inc., in the amount of $823,110, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 8.5 ID 17-1277 Award Agreement for Professional Services for the WAPA Zone 3 Water Main Project to Carollo Engineers Mr. Abbott stated this is the construction management contract administering the construction of the WAPA Project to Carollo Engineers in the amount of $151,002. He noted the construction management and construction costs are under budget by $405,888. Mayor Nexsen stated typically, the construction management runs approximately eight to twelve percent and this contract is at eighteen percent. Mr. Abbott explained that it has to do with effort and the type of project and added because the low bid was so much lower than the estimated budget or engineers estimated cost artificially increases the percentage of the construction management costs. Mayor Nexsen stated, in other words, they have to put in the same number of hours, to which Mr. Abbott stated that was correct. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to award the Agreement for Professional Services for the WAPA Zone 3 Water Main Project to Carollo Engineers, Inc., seconded by Councilmember Groat, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 8.6 ID 17-1279 Award Bid for the Cypress Park Project to T.R. Orr, Inc. Mr. Abbott stated before Council is the award of the Cypress Park Construction Project. He said the construction budget for this project is $3 million and the low bid, as awarded, is $2,804,071.48. Mr. Abbott stated the award does include the base bid, Additive Alternate #1, which is the restroom facilities, and Additive #2, the offsite improvements. He added it does not include the SARA Park component or the solar component. Mr. Lake Havasu City Page 10 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 Abbott stated the bid alternate for the solar lighting came in at $222,000 and looking at a ten year life cycle, traditional electric provides $125,000 in savings so staff did not find it prudent to go with solar. He said because of the LED lighting technology, over a ten year period, staff estimated the parking lot and walking paths lighting would cost approximately $4,000 over that ten year period. Mr. Abbott stated that the SARA Park portion of this project was for minor improvements of the ball fields and both bids received came in approximately sixty-percent over the engineers estimate. He noted a major portion of that was for purchasing materials for the removable fence and removal mounds so staff did not feel it was prudent to move forward with the award of that component. Mr. Abbott stated staff can either look at doing the work internally or it can be included as part of the SARA Park Project. Mr. Abbott stated, to recap the public involvement, the Fields Assessment has been completed, staff held interviews and discussions with the sports groups and discussions at various Parks & Recreation meetings with presentations and held two presentations with the Council. Mr. Abbott stated that T.R. Orr is out of Kingman, Arizona, and has completed 25 park projects including Wheeler Park and projects for State Parks, Bullhead City and Kingman. He added the project is projected to be 180 days or six months and depending upon the Notice to Proceed, is scheduled to be completed in early March. Councilmember Sheehy asked if the budget of $3 million included the SARA Park improvements, to which Mr. Abbott stated yes and explained the portion of the SARA Park improvements was only estimated at $50,000. In response to Councilmember Sheehy’s question regarding the Notice to Proceed, Mr. Abbott stated typically after the notice of award, staff schedules a pre-construction conference with the contractor to agree on a date. Councilmember Sheehy asked if just the main field would be lit or all of the fields. Mr. Abbott explained that all of the fields will be lit but the main field will be stadium lit and the lower fields will have lighting for practice but will not be stadium style lighting. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Coke moved to award the Base Bid and Additive Alternates 1 and 2 for the Cypress Park Project to T.R. Orr, Inc., seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat Lake Havasu City Page 11 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 8.7 ID 17-1276 Award Agreement for Professional Services for the Cypress Park Project to Carollo Engineers, Inc. Mr. Abbott stated before Council is a standard construction contract with Carollo Engineers to provide construction management services in the amount of $223,446. He pointed out with construction and construction management there is a $420,000 savings on the Cypress Park Project. Councilmember Sheehy noted that the scope of work says Cypress Park and SARA Park and wondered if SARA Park should be removed from the contract. Mr. Abbott explained it could be eliminated but staff does track that for construction management service. He added the SARA Park Project has been negotiated and will be brought before Council on August 8th to start design. Councilmember Lane stated this project is for the citizens of Lake Havasu City to help improve their quality of life and said he is happy to see this project move forward. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to award the Agreement for Professional Services for the Cypress Park Project to Carollo Engineers, Inc., seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 8.8 ID 17-1293 Approve Cooperative Purchase of Ten (10) Various Pickup Trucks with San Tan Auto Partners, L.L.C. dba San Tan Ford Maintenance Services Division Manager Mark Clark stated the item before Council is to purchase ten pick-up trucks for various divisions within the city. He said for comparison, last year staff purchased 14 pieces of equipment and vehicles as compared to 11 this year which represents a significant decrease from normal rotation. Mr. Clark stated when considering replacement staff starts with a points process where they look at the vehicles and equipment and prioritize replacement. He added the average age of the current fleet is 9.6 years and with replacement of the ten vehicles now, the fleet will actually age out about a year because staff is only replacing five-percent of the fleet instead of ten-percent. Mayor Nexsen asked if the vehicles being taken out of service will be auctioned. Mr. Clark stated they are pulled out of service and auctioned. He pointed out with the relatively inexpensive vehicles purchased through the State and capitalized over ten years it basically costs $1.50 to $2.00 an hour for a tool that allows employees to do their job Lake Havasu City Page 12 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 effectively. Mayor Nexsen asked if staff discloses the repairs on the vehicles that are auctioned, to which Mr. Clark replied yes and stated because we are a public agency staff is required to provide a CD with the entire maintenance records stating what has been serviced over the years. Mayor Nexsen asked if staff discloses what needs to be fixed on the vehicles, to which Mr. Clark replied yes. Councilmember Lin asked for an explanation of how the replacement points work. Mr. Clark explained the following: • One point per year for the age of the vehicle • One point per 10,000 miles • One to five points depending on how important it is to have the vehicle on line • One to five points for reliability or maintenance and repair costs • Five points once the vehicle reaches 100 percent of the original purchase cost Mr. Clark stated staff also rates the condition which is a real impact to the point system and is based on the mileage and age of the vehicle. He said at the direction of the Council several years ago, staff raised the threshold from 28 points to 32 points which added approximately two to three years to the vehicles. Mr. Clark stated that once a vehicle reaches those points, staff determines whether the vehicle needs to be replaced or if can be used for another year or two. Councilmember Lin stated that six of the vehicles range from 34 to 36 points and wondered if there were any safety issues, to which Mr. Clark replied no. Mayor Nexsen opened the public hearing. Mr. Charles Ringer addressed the Council and questioned whether the City has thought about leasing vehicles. Mayor Nexsen stated that leased vehicles have a mileage requirement and may pay $.15 to $.25 a mile once the mileage limit is reached. Mr. Clark stated he would be more concerned about the condition of the vehicles because of the dings and dents in the vehicles. There being no further comments, Mayor Nexsen closed the public hearing. Mayor Nexsen stated under State law the City cannot give a local preference other than a two-percent preference for sales tax. He added under the State Cooperative purchase the prices are very hard to beat and under State law, the City is obligated to go with the lowest bidder. Councilmember Sheehy moved to approve the cooperative purchase of ten (10) pickup trucks with San Tan Auto Partners, L.L.C. dba San Tan Ford in the amount of $298,537.36, seconded by Councilmember Lane, and carried by the following vote: Lake Havasu City Page 13 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Nay: 1 - Councilmember Lin 8.9 ID 17-1296 Approve Cooperative Purchase of One (1) Caterpillar 420F2 Backhoe Loader, Cab Air, 4X4, E-Stick, Ride Control from Empire for Vehicle/Equipment Replacement for FY 2017-18 Mr. Clark stated this request is also a cooperative purchase for a backhoe and is a necessary piece of equipment for the Water Division. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to approve a cooperative purchase of one (1) backhoe with the Caterpillar dealer, Empire Southwest, LLC dba Empire Machinery, for an amount not to exceed $116,050.00, and to approve a cooperative purchase agreement through National IPA-City of Tucson as may be annually renewed through April 30, 2022, seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 8.10 ID 17-1292 Approve Cooperative Purchases for After-Market Parts, Tires, Tubes, and Services from DAB Auto, Inc. dba Jack’s Auto Parts, Redburn Tire Co., Great West Tire, and Tire Mart Inc. from State Contracts. Mr. Clark stated this request is to approve expenditures over $50,000 through the state-wide cooperative purchase contract. He noted that all three vendors are local. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Groat moved to approve the cooperative purchase for after-market parts, tires, tubes, and services exceeding $50,000 from DAB Auto, Inc. dba Jacks’ Auto Parts, Redburn Tire Co., Great West Tire and Tire Mart Inc. from State Contracts, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lin, Councilmember Lane and Councilmember Groat 9. CURRENT EVENTS Lake Havasu City Page 14 Printed on 8/9/2017 City Council Minutes - Final July 25, 2017 There were no council committee reports. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, August 8, 2017 @ 6:00 p.m. – Regular Meeting Tuesday, August 22, 2017 @ 6:00 p.m. – Regular Meeting - CANCELED 12. FUTURE AGENDA ITEMS There were no requests for future agenda items. 13. ADJOURN Upon motion by Vice Mayor Coke and seconded, the meeting adjourned at 7:35 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 25th day of July, 2017. I further certify that the meeting was duly called and posted, and that a quorum was present. ____________________________________ Sacia Graber, City Clerk Assistnat/CMC Lake Havasu City Page 15 Printed on 8/9/2017