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 Councilmember Michele Lin 86403 Councilmember Donna McCoy www.lhcaz.gov Councilmember Cal Sheehy City Council Regular Meeting Minutes - Final Tuesday, October 10, 2017 6:00 PM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Chaplain Bea Evans, City On A Hill International Church Chaplain Bea Evans with City in a Hill International Church gave the invocation. 3. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. 4. ROLL CALL Present: 6- Mayor Mark S. Nexsen, Councilmember Donna McCoy, Vice Mayor Jeni Coke, Councilmember Cal Sheehy, Councilmember David Lane and Councilmember Gordon Groat Absent: 1- Councilmember Michele Lin 5. CALL TO THE PUBLIC There were no requests to address the Council. 6. CONSENT AGENDA 6.1 ID 17-1382 Approve the September 26, 2017, City Council Regular Meeting Minutes 6.2 ID 17-1357 Adopt Resolution No. 17-3173 Abandoning the Easterly 4-Foot by 130-Foot Portion of the 10-Foot by 130-Foot Public Utility and Drainage Easement Along the Westerly Property Line of Tract 119B, Block 1, Lot 12 6.3 ID 17-1358 Adopt Resolution No. 17-3174 Abandoning the Southerly 10-Foot by 20-Foot Portion of a 10-Foot by 50-Foot Public Utility and Drainage Easement Along the Eastern Property Line of Tract 2227, Block 8, Lot 9 6.4 ID 17-1383 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, October 24, 2017 Lake Havasu City Page 1 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 Vice Mayor Coke moved to approve the Consent Agenda as presented, seconded by Councilmember Groat, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 17-1319 FY 2017-2018 Grant Agency Agreements Mayor Nexsen noted that this item was for informational purposes only. 7.2 ID 17-1380 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 17-1381 City Manager's Report City Manager Charlie Cassens reported on the following: • Code Enforcement Updates. There are currently 57 open cases. • Building Permit Updates. • Special Events: o Calvary Life Group Picnic on Wednesday, October 11, 2017 at Rotary Park from 4:30 p.m. to 7:30 p.m. o 40th Annual Relics & Rods Run to the Sun, October 19-21, 2017, at the Bridgewater Links Golf Course and North Parking Lot at Rotary Park o Relics & Rods Run to the Sun Cruise Night, October 19, 2017, on McCulloch Boulevard, from Acoma Boulevard to Riviera Boulevard, from 5:00 p.m. to 8:00 p.m. • Public Safety Personnel Retirement System (PSPRS) Updates and Timeline on Upcoming Debt Issuance. Councilmember Groat asked what the carrying costs have been in debt issuance, to which Mr. Cassens said fortunately the cost of borrowing is affordable so the timing has been good, but not sustainable due to increasing interest rates. Mr. Cassens said the carrying costs for the $12.6 million issuance would be under $100,000. 8. PUBLIC HEARINGS 8.1 ID 17-1356 Series #12 Liquor License, India Spice N Bar, 460 El Camino Way/Patel Lake Havasu City Page 2 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 Ms. Williams advised that Mr. Nilesh Patel has applied for a Series #12 restaurant liquor license for India Spice N Bar, located at 460 El Camino Way. Ms. Williams said all posting requirements have been met, all fees have been paid, and no objections were received. She noted the location is properly zoned for a Series #12 liquor license. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Groat moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #12 liquor license for India Spice N Bar, 460 El Camino Way, seconded by Councilmember McCoy, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.2 ID 17-1156 Series #12 Liquor License, The Spotted Dog, 29 Acoma Boulevard South/Pennington Ms. Williams advised that Mr. Jerad Edwin Pennington has applied for a Series #12 restaurant liquor license for The Spotted Dog, located at 29 Acoma Boulevard South. Ms. Williams said this application was brought to the City in March 2017, and since that time the Arizona Department of Liquor Licenses and Control (ADLLC) has granted the City several extensions to allow the applicant to make payment and fingerprinting. Ms. Williams said to date; Mr. Pennington has not filed the required forms or made payment. She said staff is recommending disapproval of this liquor license. Mayor Nexsen said he spoke with Mr. Pennington who indicated that he does not wish to move forward with the application and disapproval is not a problem for him. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to recommend that the Arizona Department of Liquor Licenses and Control disapprove a Series #12 liquor license for The Spotted Dog, 29 Acoma Boulevard South, seconded by Councilmember Coke, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin Lake Havasu City Page 3 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 8.3 ID 17-1387 Approve Renewal of Liability Insurance to Willis of Arizona Human Resource/Risk Manager Shirlee Palbicki advised that before the Council is the annual renewal of the City’s liability insurance with Willis of Arizona for various coverages throughout the City. She said the City received a favorable quote from the existing carrier; therefore, there are no carrier changes at this time. Ms. Palbicki said the renewal quote for all coverage is $884,867.90, which includes increased coverage of the City’s cyber liability coverage. She added the quote includes a three year rate guarantee on the Airport liability coverage. Ms. Palbicki further added that the overall increase in premium was 4.6 percent. Councilmember Groat asked what the cyber insurance consists of, which Ms. Palbicki said the lines of coverage in that policy currently includes extortion expenses, computer program and electronic data restoration expenses, computer fraud, transfer fraud, and telecommunication theft. She noted that these are the recommended lines of coverage from the City’s broker based on current trends. Mayor Nexsen said for clarification it is a $50,000 increase from last year, to which Ms. Palbicki replied yes. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Sheehy moved to direct staff to bind coverage as recommended by Willis of Arizona for a total premium of $884,867.90, payable directly to Willis of Arizona, seconded by Councilmember Groat, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.4 ID 17-1374 Award Bid for the Channel Bollards & Chain Replacement Project to Technology Construction, Inc. Project Manager Dustin Salisbury advised that this item is to award bid for the Channel Bollards & Chain Replacement Project No. FA1090. He said the project involves removal and replacement of approximately 700 linear feet of bollards and chains. Mr. Salisbury said it is a 90 day contract to begin in October 2017, with a completion date in January 2018. He said Technology Construction, Inc. was the apparent low bidder at $111,000, which was reduced to $110,000 to fit within budget by adjusting the force account. Mr. Salisbury provided the Council with an aerial view of the project location as well as pictures of the current condition of the bollards and chains. He said the new bollards will Lake Havasu City Page 4 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 be constructed of steel. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to award the bid for the Channel Bollards and Chain Replacement Project to Technology Construction, Inc. in the amount of $110,000, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.5 ID 17-1375 Award Agreement for Professional Services for the Design of the London Bridge Beach and Rotary Park Restroom Improvements Mr. Salisbury advised that this item is to award an agreement for professional services for the design of the London Bridge Beach and Rotary Park Restroom Improvements Project. He said the project includes the design for the rehabilitation and expansion of six restrooms and associated utility upgrades. Mr. Salisbury said it is a 90 day contract to begin in October 2017, with a completion date in January 2018. He said the total contract amount is $59,710. Mr. Salisbury provided the Council with pictures of the current condition of the restrooms at Rotary Park and London Bridge Beach. Mayor Nexsen asked how this work is different than the design work that Mr. Jerry Clark completed for the City a few years ago, to which Mr. Cassens said the work done by the architect, Mr. Clark, was for new public restrooms. He said Mr. Clark prepared a menu of plans that were similar in footprint but different designs that the City could use in various locations for new bathrooms. Mr. Cassens said this project is for the rehabilitation and improvements of existing bathrooms. Mr. Salisbury added that the project includes the design for additional stalls in most of the bathrooms. Mr. Cassens noted that once the criteria and plans are completed under this contract, the City will begin the Request for Proposals (RFP) for the construction project. 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 Lake Havasu City Page 5 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 the London Bridge Beach and Rotary Park Restroom Improvement Projects to Shephard Wesnitzer, Inc., seconded by Councilmember McCoy, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.6 ID 17-1376 Award Agreement for Professional Services for the 2018 Tank & Booster Station Improvements to Atkins Assistant City Engineer Jeremy Abbott advised that this project is part of the annual Tank and Booster Station Rehabilitation Program. Mr. Abbott reviewed the following in his presentation: • Overall Schedule o Inspection & Design (2 Months) o Adv./Award (3 Months) o Construction (3 Months) • Budget o Current Design Budget $240,000 o Professional Services Contract $190,616  Lower due to rehabilitation versus booster station design services • Tank Inspection and Settlement Survey o N-1A-05, Constructed in 1965, 1MG o N-2A-07, Constructed in 1976, 1MG o N-3A-08, Constructed in 1969, 0.25MG o N-4A-11, Constructed in 1971, 0.25MG o C-1-15, Constructed in 1965, 0.25MG • Tank Maintenance and Rehabilitation Construction Documents o N-18-03, Constructed in 1972, 1MG o S-2C-27, Constructed in 1984, 1MG o C-4-21, Constructed in 1975, 1MG o C-3-20, Constructed in 1985, 0.5MG o N-5A-13, Constructed in 1975, 0.5MG Mr. Abbott said the City is focusing on rehabilitating more tanks and not include other booster station replacement as part of this year’s work. He said the rehabilitation work per tank could be as low as $80,000 to $800,000 depending on the items that need to be addressed at each site. Mr. Abbott explained that the inspection includes the interior and exterior coatings, the cathodic protection, and the access and safety at each of the five Lake Havasu City Page 6 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 tanks identified for rehabilitation construction. Mr. Abbott listed the following issues that were found during the past tank inspections: • Irregular shell contour • Upper interior wall corrosion/coating • Rafter end corrosion • Peeled coating Councilmember Groat asked if the City has run into any issues in the past with the tank floors, to which Mr. Abbott said yes. He said with two of the tanks currently under contract for rehabilitation they removed some of the steel because of the flexure of the steel where it had failed. He said the potential for the steel to fail is imminent and if it is not replaced it could fail without any warning. Mr. Abbott explained that with the settlement surveys the City is finding issues of extreme settlement which is showing steel failure; however, in some cases, they can go in and visually inspect and test the thickness of the floors to determine loss or corrosion of steel and replace those sections of steel if necessary. Councilmember Groat asked if there have been any geological concerns in terms of the tank placement, to which Mr. Abbott replied that the settlement does not really have to do with the geology but more to do with how the outer ring was constructed and whether it was compacted properly. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Groat moved to award the Agreement for Professional Services for the 2018 Tank & Booster Station Improvements Project to Atkins, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.7 ID 17-1377 Award Agreement for Professional Services for the Reuse Operational Plan to Carollo Engineers, Inc. Mr. Abbott provided a brief history of the City’s reclaimed water system. He outlined the following in his presentation: • Wastewater System Expansion Program (WWSE) o Various components to connect and transfer reclaimed water between the Wastewater Treatment Plant (WWTP) was constructed Lake Havasu City Page 7 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 • Reclaimed Water Management Study o January 2014 • Effluent Pump Station o June 2013 - $0.6 Million • Mulberry Effluent Basin Expansion o June 2015 - $1.2 Million • Package No. 1 (Infrastructure to connect Rotary Park and London Bridge Beach to system) o July 2016 - $0.3 Million • Package No. 2 o On Hold Mr. Abbott said staff has discussed Package No. 2 and because of the complexity of the reclaimed water system, staff feels that now is the time to step back and gain a better understanding of the operating scenarios of the system before the City physically builds the last piece. Mr. Abbott said staff is proposing to create an operational study that will be a tool that City operators and staff will use to better understand and run the system. Mr. Abbott said the Wastewater Treatment Plant, Island Treatment Plant, and Mulberry Treatment Plant are all connected by a force main that has the ability to connect and irrigate the following parks: • Rotary • London Bridge Beach • Cypress • ASU Fields • Jack Hardie Mr. Abbott said the Reuse Operational Plan will include the following: • Shadow Operations o 3 Weeks • Operational Scenarios o Standard and Non-Standard • Field Verification and Workshops • Budget o Water Conservation (Package No. 2) = $1,931,427 o SCADA Reclaimed System = $850,000 • Schedule o Water Conservation #2 (Will require another rebid early spring) o SCADA Reclaimed System  Project delayed  Identify procedures that will benefit from automation Lake Havasu City Page 8 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017  High risk factors that can be better monitored and/or controlled Mayor Nexsen asked if the professionals would also provide staff with ways to do things more efficiently, to which Mr. Abbott replied yes. Councilmember Groat asked what the City plans to do with the excess water, to which Mr. Abbott said bringing all of the parks online will consume 100 percent of the reclaimed water. He noted that the City is already providing reclaimed water to the golf courses. Councilmember Sheehy asked why the project was not budgeted, to which Mr. Abbott said it was not anticipated. He said the City had planned to move forward with Package No. 2 and start operating and automating the system; however, there are many complexities in the system and this will prepare the roadmap that the City can follow. Councilmember Sheehy asked if this would replace the efficiency study that was discussed during the budget discussions, to which Mr. Cassens said the City had set out to do an efficiency study however due to budget constraints it did not move forward. Mr. Abbott clarified that the “efficiency of the system” will focus on the equipment and how and where the City treats the flow, and not necessarily a staff efficiency standpoint; however, the automation and efficiencies in the SCADA will help with efficiency and reduce the manpower needed to run the system. Mr. Cassens said a management efficiency study is still needed in the future, but this will accomplish the same objective for the reclaimed system. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Groat moved to award the Agreement for Professional Services for the Reuse Operational Plan to Carollo Engineers, Inc., seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.8 ID 17-1373 Approve Change Order No. 2 for the Water Main Replacement Project with ABC Asphalt, LLC Mr. Abbott advised that this item is to approve Change Order No. 2 for the Water Main Replacement Project. He said Change Order No. 1 dealt with added asphalt replacement that was damaged from the previous water main breaks. He said Change Order No. 2 is a Lake Havasu City Page 9 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 final adjustment of quantities, and added that the total for Change Order No. 1 and No. 2 equate to approximately 6 percent of the total contract. He said the project has reached substantial completion and they are working on the punch list of project close-out items. Councilmember Groat asked about the deduction of the 1-inch combination of vacuum release valves that were changed to 2-inch, to which Mr. Abbott explained that the plans called for 2-inch values; however, the bid tab called for 1-inch values which was an error in the bid tab and resulted in the net change. Councilmember Groat asked about the fire hydrant assemblies, to which Mr. Abbott explained that the fire hydrant assemblies required a 6-inch isolation value to take it out of service. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Coke moved to approve Change Order No. 2 for the Water Main Replacement Project with ABC Asphalt, LLC, seconded by Councilmember Groat, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 8.9 ID 17-1378 Award Bid for the Airport Electric Vault Project to Scenic Electric, LLC Mr. Abbott advised that this project is to replace and upgrade the electric building and electrical equipment at the Airport along with a new generator. He added that all of the electrical equipment is approaching 30 years of age and has reached its lifespan. Mr. Abbott said they will be pulling new electrical wire to the taxiway lighting and will be upgrading the pilot control systems within the Airport. Mr. Abbott reviewed the following in his presentation: • Budget $485,590 • Low Bid $396,325 (Under Budget) • Federal Aviation Administration (FAA) and Arizona Department of Transportation (ADOT) Grant Funded at 95.53 percent • City’s Match – 4.47 percent (just under $18,000) • Contractor – Scenic Electric, LLC • Schedule – 60 Days (2 Months) • Anticipated Completion – January 2018 • Construction Administration Contract – future Council meeting Mayor Nexsen opened the public hearing. There being no comments, he closed the public Lake Havasu City Page 10 Printed on 10/27/2017 City Council Minutes - Final October 10, 2017 hearing. Councilmember Sheehy moved to award the bid for the Airport Electric Vault Project to Scenic Electric, LLC, in the amount of $396,325, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 9. CURRENT EVENTS There were no council committee reports. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, October 24, 2017 @ 6:00 p.m. – Regular Meeting Tuesday, November 14, 2017 @ 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 Coke and seconded, the meeting adjourned at 6:54 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 10th day of October, 2017. 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 11 Printed on 10/27/2017