City Council

Mayor Mark S. Nexsen Lake Havasu City Vice Mayor Cal Sheehy Police Facility Councilmember Jeni Coke 2360 McCulloch Blvd North Councilmember Gordon Groat Lake Havasu City, Arizona Councilmember David Lane 86403 Councilmember Michele Lin www.lhcaz.gov Councilmember Donna McCoy City Council Regular Meeting Minutes - Final Tuesday, April 24, 2018 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 Pastor Katy Scott with Lake Havasu Church of the Nazarene 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 Jeni Coke, Councilmember Gordon Groat, Councilmember David Lane, Councilmember Michele Lin, Councilmember Donna McCoy and Vice Mayor Cal Sheehy 5. CALL TO THE PUBLIC Mr. Pat Farrell with the Vietnam Veterans of American Chapter 975 presented Mayor Mark Nexsen and City Magistrate Mitch Kalauli with a commemorative award for their role in the Vietnam Veterans Court Program. 6. CONSENT AGENDA 6.1 ID 18-1597 Approve the April 10, 2018, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 18-1590 Adopt Resolution No. 18-3220 Abandoning the Condominium Plat Entitled Bluewater Condominiums and Reverting the Property Back to the Original Tract 121, Block 6, Lot 15B, Bluewater Drive and McCulloch Boulevard (Stuart Schmeling) 6.3 ID 18-1598 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, May 8, 2018 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, Lake Havasu City Page 1 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 seconded by Councilmember McCoy, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 18-1605 Lake Havasu City Partnership of Economic Development Annual Update (Jess Knudson) Mr. James Gray, Executive Director of the Lake Havasu City Partnership of Economic Development, gave a presentation to the Council that outlined the following: • Re-conceptualized Economic Development – Focused on Place Development and People Development • Vision 20/20 Projects - Downtown Catalyst Project • Co-Work Space Pilot Program – Contest Funded Project • Economic Gardening • Professional Development Series • Bright Future • Creative Comrades • Clients – Short-Term and Long-Term Needs • Project Cheetah Councilmember Lane said he liked the model that the PED is using that helps people who are here instead of trying to bring in corporate America. He noted that the idea behind the Downtown Catalyst Project is to revitalize downtown and motivate the existing businesses to do more and asked if the PED has seen that happen, to which Mr. Gray said the Downtown Catalyst Project is not a project yet but an idea; however, in terms of economic impact, if $9 to $10 million is invested it is going to have a big impact in the area. He said for example, when the PED started the Color Block Project they needed a demonstration area and started a partnership with ZMC Hotels. He said Hospice of Havasu was first on board but wanted the PED to take care of everything; however, once things got started Hospice put over $12,000 in their building because they immediately saw the value. Mr. Gray said every time we make public investments there is a response, and that is the benefit of a public/private partnership. Councilmember Lane wished the PED luck in Project Cheetah. 7.2 ID 18-1596 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) City Clerk Kelly Williams announced the current vacancies on various Lake Havasu City Boards, Committees, and Commissions. Lake Havasu City Page 2 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 7.3 ID 18-1595 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Water Conservation Challenge • Lake Havasu City Hosts Tri-City Council • SR95 and Kiowa Phase I – Update • Kiowa and SR95 Update Phase II • Body Beach • Wheeler Park Fountain • Public Notice – Call for Arguments • Sales Tax Revenue by Fiscal Year 2008-2018 • Retail Sales by Category – Fiscal Year to Date March 2018 • Coffee with the Mayor and City Manager • Special Events: • Marine Corps League Memorial Ceremony at Wheeler Park Saturday, April 28 from 10am to 9:30 am • London Bridge Christian Churches National Day of Prayer at the Police Department Thursday, May 3 from 7:30 am to 9:30 am • National Day of Prayer Walk Thursday, May 3 from 8am to 4pm 8. PUBLIC HEARINGS 8.1 ID 18-1574 Series #03 Microbrewery Liquor License, Hangar 24, 5600 Highway 95 North #6/Lewkowitz (Kelly Williams) Ms. Williams advised that Andrea Dahlman Lewkowitz has applied for a Series #03, Microbrewery, Liquor License for Hangar 24, located at 5600 Highway 95 North #6. Ms. Williams stated that all posting requirements have been met, all fees have been paid, and no objections were received. She said the location is properly zoned for a liquor license. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Sheehy moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #03 liquor license for Hangar 24, 5600 Highway 95 North #6, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy 8.2 ID 18-1592 Introduce Ordinance No. 18-1198 Amending City Code Chapter 5.12, Alcoholic Beverage License, To Delegate Approval for Acquisition of Control and Agent Change Liquor Licenses to Reduce Processing Time Lake Havasu City Page 3 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 (Kelly Williams) Ms. Williams advised that last year an ordinance was brought before the City Council amending City Code Chapter 5.12, Alcoholic Beverage License, delegating approval for Special Event, Fair/Festival, and Extension of Premise Liquor Licenses to a designee, the City Manager, in lieu of a public hearing before the City Council, to reduce processing time. She said at the time, Acquisition of Control and Agent Change Liquor Licenses were overlooked and were not included in the code change. Ms. Williams stated that currently all acquisition of control and agent change liquor license applications are processed and approved by City staff, as state law does not require posting or a public hearing. Ms. Williams stated that staff has prepared the proposed revisions to Chapter 5.12 of the City Code, which delegates review and recommendation authority to the City Manager for these specific types of liquor license applications. Councilmember Lin asked about the proceeds that non-profit organizations receive from the special event promotors, to which City Attorney Kelly Garry stated that staff brought that information to Council and there was discussion on the City and State’s process as it relates to special events. She said at that time there was no direction from the Council. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to introduce Ordinance No. 18-1198 amending Lake Havasu City Code Chapter 5.12 to delegate approval for acquisition of control and agent change liquor licenses to reduce processing time, seconded by Councilmember Coke, and carried by the following vote: Aye: 6 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember McCoy and Vice Mayor Sheehy Nay: 1 - Councilmember Lin 8.3 ID 18-1591 Approve System Upgrade Agreement for Radio System with Motorola Solutions, Inc. (Jonathan Baskette) I.T. Division Manager Jonathan Baskette stated that approximately eight months ago staff implemented the new Motorola Radio system which controls the radios for the entire city. He said the original service agreement which was included in the original purchase is expiring in approximately four months so Motorola has presented staff with a new ten-year service agreement. He noted the new service agreement is a little different than the previous agreements because of the technology in the new radio systems. Mr. Baskette stated they are including software updates and equipment updates every two years for the next ten years. He added that the cost is for standard support and maintenance that all companies are offering, just over ten percent over the initial purchase value and then it Lake Havasu City Page 4 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 takes up a four percent variance every year. Mr. Baskette stated that it also includes a service agreement for the Cambium Microwave tower and the Island tower and also includes 24/7 real time monitoring. Mayor Nexsen stated that he noticed that every year there is not an incremental four percent and wondered if is that because of the scheduling of swapping out certain software and equipment. Mr. Baskette explained that it is basically four percent but in year six it drops dramatically and that is due to the NICE System which logs all of the 911 calls. He added that the agreement between Motorola and NICE System is only six years and will have to renegotiate a new service agreement at that time. Vice Mayor Sheehy asked if there was a reason the Motorola was a ten-year agreement and not a six-year agreement. Mr. Baskette explained that because of the upgrade every two years so five upgrades would make the ten-year mark work for them and that is all they offer. Councilmember Lane asked if staff has had any problems or major problems since this system went into effect. Mr. Baskette explained stated there have been no major issues just getting used to the voice quality and getting all of the programming completed. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Groat moved to approve and authorize the City Manager to execute the System Upgrade Agreement with Motorola Solutions, Inc., for a period of ten years, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy 8.4 ID 18-1594 Award Agreement for Professional Services for the Airport Master Plan Update to Coffman Associates (Jeremy Abbott) Assistant City Engineer Jeremy Abbott addressed the council and stated this agreement is the next step in the Federal Aviation Administration’s (FAA) grant approval process. He stated it is important to note in the motion that the City will not execute the approval of the contract until formal approval is received from the FAA. He said that the grant application was approved by council in December 2017 and staff expects notification from the FAA within the next month. Mr. Abbott reviewed the Airport Master Plan as follows: Airport Master Plan Update • Total Project Cost = $557,823 Lake Havasu City Page 5 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 • Master Plan = $510,060 • Administration = $25,503 • Economic Benefit Analysis (Not Grant Eligible) = $22,260 • FAA & ADOT Grant Funded (95.53%) • FAA/ADOT Grant Share = $511,624 • City Share = $46,199 • Coffman Associates • Schedule – 24 months (Spans 3 Fiscal Years) • Anticipated completion – June 2020 Airport Master Plan Update – Tasks • Initiation • Inventory • Forecasts • Facility Requirements • Airport Alternatives • Recommended Master Plan (Concepts & Capital Financial Plan) • Plans • Environmental Evaluation • Sustainability Plan • Public Coordination and Communication • Final Report • Economic Benefit Analysis Mr. Abbott noted that as part of the FAA requirement, the City is required to develop an Airport Advisory Committee not to exceed twenty members. He added they would not be a voting committee but would simply provide guidance and review through the process. Objectives • Determine needs of the airport and its users • Recommended improvements, • Priority • Capital cost • Schedule • Operating costs and revenue • Update Master Plan is required by the FAA for continued federal funding • $3M in Federal & State Grants for Airport improvements in last 10 years Mayor Nexsen asked why the City could not use our existing Airport Advisory Committee. Mr. Abbott stated the requirement is to create a committee that involves not only users of the airport and staff members but also identify other interested parties and invite them to Lake Havasu City Page 6 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 be a part of that committee. Vice Mayor Sheehy stated as the liaison for the Airport Advisory Committee, there are a variety of members that will want to participate and noted that the Airport Master Plan is a standing agenda item regarding the progress and updates on the plan. He added that there was also discussion at the Airport Advisory Committee meeting to make sure the plan specifically addresses commercial and noted that it seems to be referenced as general aviation. Vice Mayor Sheehy asked if that had been discussed during the process of putting together the scope. Mr. Abbott stated commercial was in their negotiations and at one point it was recommended that it be removed but staff did ensure that it be part of the master planning effort. He added whether it is feasible or not staff wanted to make sure that is part of our future with that airport. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to award the Agreement for Professional Services for the Airport Master Plan Update to Coffman Associates after formal FAA approval is received, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy 8.5 ID 18-1599 Award Bid for Tank Rehabilitation to MMI Tank & Industrial Services, Inc. (Chris Rosetti) Project Manager Chris Rosetti stated that he was before Council to review the tank rehabilitation project WT7470. He reviewed the following in his presentation: WT7470 Tank Rehabilitation • Purpose – Maintenance & repair work on 4 of the city’s potable water reservoirs • Sandblast & recoat tank interior • Replace rafters & purlins, cathodic protection system • Fabricate and install roof vent & shell manhole • Repair tank floor • Install safety climb device • Spot repair and top coat of exterior tank walls and roof • Construction Budget $2,400,000 • Engineer’s Estimate $2,252,600 • Low Bid $1,453,614.90 – MMI Tank & Industrial Service, Inc. • Schedule A – Tank N-1B-03 – 1MG – Base Bid • Schedule B – Tank N-3A-08 – 0.25 MG – Bid Alternate Lake Havasu City Page 7 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 • Schedule C – Tank N-1A-05 – 1MG – Bid Alternate • Schedule D – Tank N-2A-07 – 1MG – Bid Alternate • Schedule E – Remove Existing Interior Ladder (N-2A-07) – Bid Alternate • 80 Calendar Days – Base Bid • 100 Calendar Days – Concurrent Bid Alternatives Mr. Rosetti noted that the reason staff separated out the bid schedules was due to the timing of this project as it is approaching the summer season which can affect the work. He stated that anticipated completion is around November 2018. Councilmember Groat asked what the extended life will be on these tanks versus new tanks, to which Mr. Rosetti stated that the increase in the life expectancy of these tanks after rehabilitation would be approximately 15 years and total replacement would be approximately $1 per gallon with today’s market. Councilmember Groat asked if there was anything in terms of the integrity of the walls when looking at the corrosion that gave staff any concern, to which Mr. Rosetti stated that staff reviews the inspection reports and recommendations from the consultants. He added that Atkins senior staff also reviews the inspection reports and makes a recommendation to the City of what needs to be done to correct the deficiencies at the lowest possible cost. Councilmember Groat asked for a quick overview of what the new OSHA regulations require the City to do. Mr. Rosetti explained the current tanks have an exterior cage device and the new safety climb system requires you to strap on a harness and connect it to a line that travels up the median of the ladder and prevents any types of falls. Mayor Nexsen said the low bid was much lower than the others and asked if staff was confident that they can get the work done for this bid amount as opposed to asking for change orders on a regular basis. Mr. Rosetti stated that the other two contractors were out of California so they face higher labor fees due to union wages. He added that the project manager for MMI which plays a part in the lower bid. He added that MMI just completed a project with two other tank rehabilitations and what it comes down to is they know what to do, they do good work, they are efficient, and they get in and get out. Mayor Nexsen asked if there were any change orders on the tanks they just completed rehabilitating. Mr. Abbott explained there were change orders that were related to the floor repairs. He stated what staff has done differently now is during the inspection a floor survey is completed when the tanks are emptied and are incorporating the floor survey as part of the rehabilitation project that identifies flaws and issues with the floor so staff knows what has to be done prior to the award of the bid project. Vice Mayor Sheehy noted in the bid tabulation that there are a couple of areas that are Lake Havasu City Page 8 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 highlighted that say that there are discrepancies between the words and the figures. Mr. Rosetti stated he believed those were typos and what they wrote out in the dollar amount was different than what they wrote out numerically. He explained as part of the due diligence staff contacted the contractor and verified with the contractor that the bid was correct. Mayor Nexsen opened the public hearing. Mr. Jeff Wade addressed the council and wondered if the corrosion in the tanks has affected the water quality or if there is a filtration process. Operations Manager Mark Clark stated that most of the corrosion occurs above the waterline where it is exposed to air and the moisture and does not occur where the water is actually at so there is really not a lot of contact with the water you are drinking. He added that testing is required at the delivery point so homes are not tested at the tap but said, the reality is there are little bits of stuff in all of our water and it is tested to show that it is within the guidelines. There being no further comments, Mayor Nexsen closed the public hearing. Councilmember Groat moved to award the Base Bid and Additive Alternates for the Tank Rehabilitation, Project No. WT7470, to MMI Tank & Industrial Services, Inc., seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy 8.6 ID 18-1603 Award Professional Services (Construction Management) Agreement for the WT7470 Tank Rehabilitation Project to Aktins North America, Inc. (Chris Rosetti) Mr. Rosetti this is to follow-up with construction management to Atkins in the amount of $188,284 which staff feels is very reasonable considering the scope of the work on the four tanks at four different locations. Mr. Rosetti reviewed Atkins construction management responsibilities as follows: • Total Cost: $188,284 • Project Management • Submittals • RFI’s • Daily Field Reports • Progress Meetings • Pay Application • Full Time Coating Inspection Lake Havasu City Page 9 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 • 1 Inspector for the first tank • 2 Inspectors for the three concurrent tanks Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to award the Professional Services Agreement for the WT7470 Tank Rehabilitation Project to Atkins North America, Inc., seconded by Councilmember Groat, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy 9. CURRENT EVENTS Councilmember McCoy reported on the Western Arizona Council of Government (WACOG). She said there will be an Aging Summit in Arizona on September 20-21, 2018, and added that “World Elder Abuse Awareness Day” will be recognized on June 15, 2018. Councilmember Groat reported that he attended a meeting in Golden Shores hosted by the United States Department of the Interior and met with representatives from the U.S. Department of Interior, the Bureau of Reclamation, the California Environmental Protection Agency and DTCS. He said they have developed a two-phase program: the first step is to prevent the Hexavalent Chromium plume from reaching the Colorado River, and the second step is a remediation program. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Thursday, April 26, 2018 @ 9:30 a.m. – CIP Work Session Thursday, May 3, 2018 @ 9:00 a.m. – Budget Overview Work Session Tuesday, May 8, 2018 @ 6:00 p.m. – Regular Meeting 12. FUTURE AGENDA ITEMS There were no requests for future agenda items. 13. ADJOURN Upon motion by Councilmember McCoy and seconded, the meeting adjourned at 7:23 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 April, 2018. I further certify that Lake Havasu City Page 10 Printed on 5/9/2018 City Council Minutes - Final April 24, 2018 the meeting was duly called and posted, and that a quorum was present. ____________________________________ Kelly Williams, City Clerk/CMC Prepared By: ____________________________________ Sacia Graber, City Clerk Assistant/CMC Lake Havasu City Page 11 Printed on 5/9/2018