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 24, 2017 6:00 PM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Lan Blair, Abundant Grace Pastor Lan Blair with Abundant Grace 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 Ms. Loreva Foster addressed the Council regarding the donation of 575 Player Lane to Social Services Interagency Council (Interagency). She said when 575 Player Lane became available she and her husband thought it would be a perfect fit for Sally’s House because their current home is small and they have turned women and children away due to lack of beds. Ms. Foster said she wanted the Council to be aware that the Interagency Executive Board has not respected the restricted donation that was freely given to them to help the women and children of Lake Havasu City at Sally’s House. Ms. Foster presented each of the Council with a handout. Mayor Nexsen reminded the public that matters during the Call to the Public need to be within the City’s jurisdiction. He said this is a matter that needs to be taken up with Interagency. Ms. Foster responded that they feel it is within the City’s jurisdiction and the Council should be aware of what they are doing because the City contracts with Interagency. Lake Havasu City Page 1 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 Mr. Jim Foster addressed the Council regarding the donation of 575 Player Lane to Interagency. He said the city needs a sanctuary for those affected by domestic abuse. Mr. Foster said 3½ years ago they met with the Interagency Executive Board regarding a proposal of a restricted grant for use of 575 Player Lane to battered women for Sally’s House. He said at the time they understood that it was legal to have five unrelated residents in a home. Mr. Foster said if Interagency decided against using the home for that purpose it was to be sold with the entire proceeds to be distributed to Sally’s House. He said 575 Player Lane is approximately 7,000 square feet and is located on the golf course. He added that the home was in good condition when given to Interagency with no liens or encumbrances, and when asked, he was denied a copy of the appraisal and was told the property sold for $415,000. Mr. Foster said the terms of the restricted grant have not been followed and Interagency has leased the property. He said the rent from the lease should be going to Sally’s House; however, he is not able to confirm whether that is happening. Mr. Foster added that Interagency has also placed liens and encumbrances on the property which was not part of the agreement. He said Interagency is not being transparent with this property and where the money is going which is a gross mismanagement of funds and grant funding. Dr. Carlos Ruiz addressed the Council and said he wanted to make the City Council aware of what is happening with Interagency. He said there are a lot of unanswered financial questions and he would like to see Interagency get their respectability back but in order to do that they need to provide some reassurance and answer the public’s questions. He said the City experienced a similar issue with the grant funding given to Interagency for veteran services. He said Mr. and Mrs. Foster donated a 7,000 square foot golf course home to Interagency under specific guidelines which have not been followed and now the property is encumbered. He asked that the City Council hold Interagency accountable for the money they receive from the City. 6. CONSENT AGENDA 6.1 ID 17-1394 Approve the October 10, 2017, City Council Regular Meeting Minutes 6.3 ID 17-1360 Adopt Resolution No. 17-3178 Abandoning the Southerly 5 Feet of the 10-Foot Public Utility and Drainage Easement Along the Northern Property Line of Tract 123, Block 14, Lot 1 6.4 ID 17-1361 Adopt Resolution No. 17-3179 Abandoning the Northerly 5-Foot by 22-Foot Portion of the Easterly 10-Foot Public Utility and Drainage Easement Along the Southern Property Line of Tract 2215, Block 2, Lot 11 6.5 ID 17-1403 Approve Addendum No. 2 to Reclaimed Water User Agreement for the London Bridge Golf Course Consenting to Assumption by GEA Enterprise, Lake Havasu City Page 2 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 Inc. 6.6 ID 17-1389 Approval of an Amended Final Subdivision Plat for Tract 2379, a Portion of Havasu Foothills Estates Phase II, the Villas, the Subdivision of 46 Residential Lots, 2 Commercial Lots, Public Right-of-Way, and Parcel C 6.7 ID 17-1395 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 4:00 p.m. Tuesday, November 14, 2017 Councilmember Lane requested that Item 6.2 be removed from the Consent Agenda for separate discussion. Vice Mayor Coke moved to approve the Consent Agenda as presented with the exception of Item 6.2 which was removed for separate discussion, 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 6.2 ID 17-1359 Adopt Resolution No. 17-3177 Abandoning the Westerly 5-Foot by Approximately 100-Foot Portion of the 10-Foot Public Utility and Drainage Easement Along the Eastern Property Line of Tract 2157, Block 13, Lot 8 City Attorney Kelly Garry said staff requested that this item be tabled. She said there are utility issues that need to be addressed before this item moves forward. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to table Item 6.2, 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 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 17-1392 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions City Clerk Kelly Williams announced the current vacancies on various Lake Havasu City Lake Havasu City Page 3 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 Boards, Committees, and Commissions. 7.2 ID 17-1393 City Manager's Report Acting City Manager/Police Chief Dan Doyle reported on the following: • Sales Tax Updates – Reported by Administrative Services Director Tabatha Miller • Code Enforcement Updates. • Building Permit Updates. • Coffee with the Mayor and City Manager will be held November 10th at the Golden Corral from 7:30am to 9:00am. • Special Events: Saturday, October 28 • The Annual London Bridge Days Parade –“The Magic Behind America’s Best Community-Lake Havasu City” will be on McCulloch Boulevard from 10:00 am to 12:00 pm. • The Lake Havasu Firefighter Charities Annual Pumpkin Festival from 11:00 am to 5:00 pm at the vacant lot next to the Aquatic Center. Sunday, October 29 • The Annual London Bridge Days Pancake Breakfast under the London Bridge from 7:00 am to 10:00 am. • The Lake Havasu Firefighter Charities Annual Pumpkin Festival from 11:00 am to 5:00 pm at the vacant lot next to the Aquatic Center. • The Save a Life Domestic Violence Awareness Walk at Rotary Park from 8:00 am to 11:00 am. Tuesday, October 31 • Annual Fright Night on McCulloch Boulevard from 5:00 pm to 9:00 pm. • First Baptist Church Annual Trunk ‘n Treat at 228 London Bridge Road from 4:00 pm to 9:00 pm. Saturday, November 4 • The Annual Chillin ‘N Swillin at the Rotary Park Ballfields from 2:00 pm to 6:00 pm. • The 3rd Annual Moving for Memory Walk at Rotary Park from 6:00 am to 2:00 pm. • Hangar 24 AirFest at The Airport and Hangar 24 from 11:00 am to 7:00 pm. • Jack Jackson Concert at the Stage at London Bridge Beach from 3:00 pm to 7:00 pm. 8. PUBLIC HEARINGS 8.1 ID 17-1397 Adopt Resolution No. 17-3180 Authorizing the Prepayment of Outstanding Principal on the Excise Tax Revenue Bonds, Series 2016 Ms. Tabatha Miller reviewed the following information in her presentation to Council: Debt Issuance Lake Havasu City Page 4 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 • Issued Request for Proposal on October 19, 2017 for $12.6 million o Competitive process to reduce interest cost • Bond Proceeds to be used to prepay Public Safety Personnel Retirement System (PSPRS) for FY 2018 and FY 2019 • Potential to earn higher interest rate from PSPRS • Short maturity to be paid back in two years • Excludes City’s PSPRS contribution costs from Expenditure Limitation – approximately $6 million per year Expenditure Limitation • Tax Reform package approved by the Arizona voters in 1980. • Limits what cities and towns can spend in any year to what was spent in 1979-1980, adjusted annually for population changes and inflation. • Does not take into account new services, new facilities or parks, new revenue sources or the impact of part-time residents or tourist who use City services but are not part of the population. • Limits only what a City can spend, not the revenue it collects. The Expenditure Limitation does not change the taxes levied or fees charged by a City. • Certain expenditures, such as spending of debt proceeds and repayment of debt service is excluded. Expenditure Limitation Management • $12.6 PSPRS Debt issued to manage Expenditure Limitation • FY 2017-18 Expenditure Limitation = $57.6 million o Retained Residential Trash Service Billing = $5.8 million o Continue to fund Community Improvement Program (CIP) with debt proceeds  Issued $12.2 million in 2016  Approximately $5 million remains to be used this Fiscal Year  Budgeted for additional CIP Debt, if needed • Voter approved Alternative Expenditure Limitation in Fall of 2018 will eliminate the need to borrow money when the City has available cash 2016 Debt Excise Tax Prepayment • Pledged local sales tax for 2016 CIP Debt o 3 times revenue coverage covenant • Flexible Call Provision allows for repayment of debt at any time to save interest cost • Interest ranges from 1.15 percent to 1.66 percent • $9.8 million of Principal Outstanding • Final Maturity scheduled 7/01/2021 • Early Payment will free up pledged local sales tax • Saves $325,000 of interest cost 2008 Greater Arizona District Association (GADA) Loan (Second Bridge) Prepayment Lake Havasu City Page 5 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 • Pledged local sales tax, franchise tax, state shared income tax, all license and permit fees, fines and forfeiture revenues • Option for prepayment of remaining principal as of August, 2018 • Interest ranges from 3 percent to 5 percent • $1.26 million of Principal Outstanding • Final Maturity scheduled 7/01/2023 • Early Payment will free up pledged revenues • Saves just under $150,000 of interest cost Mayor Nexsen said the City is in an unfortunate situation, because there is approximately $40 million in cash reserves; however, in order to get around the Expenditure Limitation the City has to borrow the money and then pay it back. He said at the Fall Election of 2018 the City is going to essentially hit the “reset” button which will allow the City to project full growth, at approximately 96,000 residents, and operate without having to borrow and pay back. He explained that when the Expenditure Limitation was set in 1979-1980, Lake Havasu City was a small city with approximately 13,000 people and did not have any of the amenities, like the sewer and parks, which we have today. He added that the City also has an obligation to public safety personnel to make the pension payments, which counts against the Expenditure Limitation. Mayor Nexsen said resetting the Expenditure Limitation will allow the City to pay for the parks and services that the citizens want in this community. Ms. Miller added that over 85 percent of the cities and towns in Arizona have already opted out of the Expenditure Limitation through a voter initiative. Councilmember Lane said education on the Expenditure Limitation is critical and asked about the associated costs with borrowing this money, to which Ms. Miller said at the next meeting staff will bring forward the interest rates and what the debt issuance costs will be. She estimated that the total interest and issuance of cost would be between $300,000 and $400,000. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Sheehy moved to adopt Resolution No. 17-3180 authorizing the early redemption of $9,760,000 in principal for the Excise Tax Revenue Bonds, Series 2016, 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 Lake Havasu City Page 6 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 8.2 ID 17-1396 Adopt Resolution No. 17-3181 Authorizing the Payment of Outstanding Principal on the 2008 Greater Arizona Development Authority (GADA) Loan Agreement There were no questions or comments from the Council. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to adopt Resolution No. 17-3181 authorizing the early redemption of $1,260,000 in principal for the 2008 Greater Arizona Development Authority Loan, seconded by Vice Mayor 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 8.3 ID 17-1371 Adopt Resolution No. 17-3176 Declaring as a Public Record the “Lake Havasu City Amendments to Title 14, Zoning” Dated October 24, 2017 City Planner Luke Morris advised that this item is to adopt a resolution for amendments to the Development Code. He said any changes made to the amendments in the resolution would also change in the next item which adopts the amendments by ordinance. Mr. Morris reviewed the proposed changes as follows: • Amend Use Table 3-1 to allow Alcohol Beverage Sales in Light Industrial (LI). • Add to 14.03.02 Table 3-1; Accessory Shipping Containers • Amend Table 4.01-1: Dimensional Standards for Residential Districts; Building Setbacks and Frontage for R-UMS, R-CHD, and R-SGD • Amend Table 4.01-5: Height Exceptions; Maximum Height and Conditions or Limits in Mixed-Use Districts but does not apply to Single-Family, Two-Family, or Multi-Family Zoning • Amend Table 4.02-1: Minimum Required Off-Street Parking to remove “Plus guest parking at 10% of resident parking standards above” under Land Uses for Dwelling, Multi-Family. • Amend Figure 4.02-2: Universal Handicap Space Standards to remove the 20-foot depth requirement • Amend 14.04.02.F: Residential Standards for parking for one single-family or one two-family residential dwelling and parking for multiple-family residential dwellings. • Amend 14.04.04.C.4: Minimum Plant Sizes to remove reference to a minimum caliper, and Amend 14.04.04.G4: Screening of parking areas to include that parking spaces facing a right-of-way shall be screened by a minimum Lake Havasu City Page 7 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 three-foot tall screen using materials described in Section 14.04.04.G.1.c. • Amend 14.05.01.C: Board of Adjustment (BOA) to include that “members and alternates shall serve until their successor is appointed and qualified” and “the terms of office shall be staggered”. • Amend §14.05.04: Specific Regulatory Procedures for Development Code and Zoning Amendments, Zoning Map Amendment Protests, to bring the City Code into compliance with state law. • Amend 14.05.05: Establishes Section 1.12 as the Development Code violation process, which is the same violation process currently used for Nuisance Code. Councilmember Sheehy asked how the City currently handles shipping containers, to which Mr. Morris said the City currently has an informal policy. He explained that shipping containers can be used for projects in conjunction with an issued building permit. Mr. Morris said the City does not see many; however, this amendment will clarify how and where they can be used. He explained that shipping containers are not allowed in residential areas for storage permanently and are only allowed in residential areas as a detached accessory structure. Councilmember Sheehy asked what would happen to the existing storage containers around the city, to which Mr. Morris replied that they are currently not allowed so it would be a matter of enforcement. He said this amendment makes it clearer that they are not allowed permanently. Councilmember Groat asked if the City Code would allow for shipping containers to be used as livable structures, to which Mr. Morris said the existing code states that shipping containers can be used for temporary use for storage, not for primary use or in residential areas. He said a livable shipping container would have to comply with building codes, which it would not because they are not allowed permanently in residential areas, only for storage, commercial, multi-family and mixed-use temporary use. Mayor Nexsen said communities with livable shipping containers have probably modified their codes to allow them in residential areas. He said currently in Lake Havasu City a livable shipping container would have to meet the building codes, which it would not because they are prohibited in residential areas. Mayor Nexsen opened the public hearing. Ms. Angela Foltz addressed the Council and asked if the definition of “temporary” was defined within shipping containers. Lake Havasu City Page 8 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 Mr. Morris said a Temporary Use Permit (TUP) would only be issued in conjunction with an active building permit for a period of one year. He noted that a TUP may be extended under certain circumstances which would be reviewed on a case-by-case basis; however, the idea is that the shipping containers are to be used to store materials during construction to keep materials safe and secure. Mr. Morris said TUP’s are issued for a maximum of one year or for the life of the building permit, whichever is less. Ms. Foltz asked if additional language should be included in the amendments so that the definition of “temporary” is clear. Councilmember Sheehy noted that the definition states that a “temporary shipping container may be used for a temporary office, storage of materials during construction taking place on the property where the shipping container is located when having an active building permit and an approved temporary use permit.” Mayor Nexsen said he thought shipping containers were not allowed in residential areas, to which Mr. Morris clarified that temporary shipping containers would be allowed in residential areas with a TUP for storage in conjunction with an active building permit. Mayor Nexsen asked if they were allowed in industrial areas, to which Mr. Morris explained that in industrial areas it would be similar and they could have more than one depending on the need and for a temporary basis for materials or office space. Mayor Nexsen said he could see how easily shipping containers could be overlooked for a long period of time in commercial areas and wondered who would be responsible for monitoring them, to which Mr. Morris explained that TUP permits are monitored along with the building permits. Councilmember Sheehy said after reading the section it states that in certain zoning areas shipping containers can be used as an accessory use and a building permit is required prior to placement of a container that is larger than 200 square feet in area. Mr. Morris clarified that it would be allowed as an accessory use in a commercial area with the proper setbacks, separations, building permits, and screening required for that district because it is an accessory use for storage only; however, it would have to be with a building permit if over 200 square feet. Mr. Morris said there are two different types of uses: 1) accessory storage in commercial areas, and 2) temporary short-term use for construction storage in conjunction with an on-going building permit and also with a TUP. He added that there is a maximum timeframe with the TUP. Lake Havasu City Page 9 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 There being no further comments, Mayor Nexsen closed the public hearing. Councilmember Lane said what he heard from Mr. Morris is that there are two separate sections: one for permanent and one for temporary. He said the permanent is not allowed in residential areas and there are certain restrictions that the fire marshal must approve. He said the temporary permit is only allowed while construction is occurring, and is only allowed while the process is on-going and when the building permit expires so does the permit to have the shipping container on the property. Mr. Morris replied that was correct. Ms. Garry said the Council can request additional language to clarify temporary; however, the “T” (for Temporary) indicated in the table is no different than all the other “T’s” in the table and how the City handles temporary uses for everything else. Mayor Nexsen asked if all temporary uses are for one year, to which Ms. Garry replied no. She explained that there are short-term temporary uses and regular-term temporary uses and depends on the application. Ms. Garry noted that the permits are typically for 30 days; however, others can be for 3 days. She clarified that if the application is to use the shipping container for construction, a TUP will be issued for the term of the project or construction; however, if it is to be used for something like short-term storage, then it would be issued a temporary use for 30 days. Mayor Nexsen asked about houses that are under construction for several years, to which Mr. Morris said that a TUP is good for one year and then after it has expired they would need to provide good cause to extend their permit to keep the shipping container on the property. Councilmember Sheehy asked if the Council could adopt the resolution and ordinance but table the section related to shipping containers to a later date, to which Ms. Garry advised that if Council is requesting more information then she would recommend tabling this item and the next item, or the Council could also make a motion to remove the shipping container portions from the resolution. Councilmember Sheehy stated that he was in favor of tabling the shipping container portion to allow for more discussion on how things operate especially in the commercial sector, and to address long-standing construction in residential areas. Councilmember Lane asked if both items could be tabled versus removing certain sections from the adopted document, to which Community Investment Director Greg Froslie said Lake Havasu City Page 10 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 these two items are not time sensitive and could be postponed. Councilmember Sheehy moved to table Item 8.3, 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 8.4 ID 17-1388 Adopt Ordinance No. 17-1188 Amending Lake Havasu City Code Title 14, Zoning, (the Development Code) Sections 14.03.02, 14.03.03, 14.04.01, 14.04.02, 14.04.04, 14.05.01, 14.05.04, 14.05.06, and 14.06.03 Regarding Alcohol Sales, Shipping Containers, Setbacks, Height Exceptions, Guest Parking, Universal Handicapped Standards, Driveway Paving, Tree Sizes, Parking Screening, Board of Adjustment, Protests and Compliance Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Sheehy moved to table Item 8.4, 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 8.5 ID 17-1391 Approve Sole Source Purchases of Allen Bradley Parts from Border States for the London Bridge Road Lift Station Utilities Superintendent Andy Astor said staff is requesting approval of the purchase of Variable Frequency Drives (VFD) that exceeds the $50,000 threshold. He said purchasing the VFD’s at once will save the City approximately $9,000. Mr. Astor explained that the VFD’s are used at the London Bridge Road Lift Station to control the pumping of wastewater through the treatment plant, and can be serviced easier and utilized in multiple locations. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to approve sole source purchases of Allen Bradley parts from Border States for the London Bridge Road Lift Station, seconded by Councilmember Lane, and carried by the following vote: Lake Havasu City Page 11 Printed on 11/15/2017 City Council Minutes - Final October 24, 2017 Aye: 6 - Mayor Nexsen, Councilmember McCoy, Vice Mayor Coke, Councilmember Sheehy, Councilmember Lane and Councilmember Groat Absent: 1 - Councilmember Lin 9. CURRENT EVENTS Councilmember Lane reported that he attended the Rural Transportation Summit in Prescott, Arizona, where the State spoke about their commitment to restoring Highway User Revenue Funding (HURF). Mayor Nexsen provided an update on SB1487. He said under this bill any State Legislator can file a complaint with the Attorney General’s office about any Arizona city or town. He said if the Attorney General’s office finds that a city or town violated State law, the city or town has 30 days to repeal the law or face loosing state-shared revenue. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, November 14, 2017 @ 4:00 p.m. – Executive Session Tuesday, November 14, 2017 @ 6:00 p.m. – Regular Meeting Wednesday, November 15, 2017 @ 4:00 p.m. – Special Meeting Tuesday, November 28, 2017 @ 6:00 p.m. – Regular Meeting 12. FUTURE AGENDA ITEMS There were no requests for future agenda items. 13. ADJOURN Upon motion by Councilmember Coke and seconded, the meeting adjourned at 7:18 p.m. CERTIFICATION I hereby certify that the foregoing is a full and true copy of the Regular Meeting Minutes of the Lake Havasu City Council held on the 24th day of 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 12 Printed on 11/15/2017