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 CIP Work Session Minutes - Final Thursday, April 26, 2018 9:30 AM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 9:30 a.m. 2. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. 3. 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 4. CALL TO THE PUBLIC There were no requests to address the Council. 5. COMMUNITY INVESTMENT PROGRAM (CIP) OVERVIEW City Manager Jess Knudson addressed the Council and stated that today staff is presenting a preliminary CIP for their consideration. He said staff has worked very hard over the last six weeks to identify projects in the CIP for each of the next five years based on existing resources. He added it is an analysis in terms of where the City is going to be and is very conservative in terms of assumptions in increases for the revenues and the available dollars that the City will have over the next five years. Mr. Knudson stated it is important to note that there are more projects than dollars so part of staff conversations was to identify what is important to the community and what is important to the council and contractual obligations. He added that staff also looked at what is smart in terms of protecting the city’s existing investments and then looked at projects in terms of the maintenance costs. Mr. Knudson said that he wanted to make sure that the council and public understands that this is a revolving document and added, what staff is looking for is input from the council and residents that will guide the process moving forward. He stated staff is asking for input to keep the CIP established in a manner that the funding that the City has available matches the projects that are in the CIP. Mr. Knudson stated new projects can be introduced but the recommendation from staff is going to be that if a new project is Lake Havasu City Page 1 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 added into the CIP, an equal dollar value will have to be removed from the CIP so the projects that are identified in the CIP match the City’s available resources. He added that staff is not asking for any action from the council but would appreciate direction in terms of discussion and questions if the CIP is to remain the same or evolve and what type of direction the council sees fit for the CIP. Mr. Knudson stated staff will present a list of projects that have been accomplished and a list of projects within the CIP with specific details. He added staff would also talk about available funds, some nuances related to Proposition 409 (Prop 409), and nuances related to different debt options that may or not be of consideration for the council. Mr. Knudson turned the presentation over to City Engineer Greg Froslie and added that Assistant City Engineer Jeremy Abbott and Interim Administrative Services Director Rob Sweeney would also be contributing to the presentation. Mayor Nexsen pointed out that the budget for this coming Fiscal Year 2018-19 is limited by the Expenditure Limitation and if Prop 409 passes, it would not go into effect until next July 1, 2019. He stated while the future projects are limited by resources specifically this next year is limited by the Expenditure Limitation. Mr. Froslie stated that he wanted to note that the five-year CIP is a requirement of City Code Section 2.7 which requires the council to adopt a long range CIP to fortify the fact that the City apply long term planning with regards to infrastructure needs as well as fiscal responsibility. He added along with the City Code, the City has established Operating Policy and Procedures (OPP) that staff lives by every day. Mr. Froslie stated that OPP 6.01 is the policy manual for the CIP and is a very detailed policy manual that describes what staff are involved with the development of the CIP. He added the policy has a very detailed schedule laid out where the CIP working group meets with every department director and division manager to identify their CIP needs going into the future and has a very detailed list of criteria for ranking projects. Mr. Froslie stated it is a very thoughtful process that takes approximately one year to develop. Mr. Froslie stated that he would be reviewing some of the Fiscal Year 2017-18 accomplishments and the reason why some projects have not been accomplished, Mr. Sweeney would be reviewing available funding and some unique challenges that staff has had to face this year with the development of the CIP, and Mr. Abbott would be talking in detail about the projects and the dedicated funding sources. Mr. Froslie reviewed the following presentation for Council: Fiscal Year 2017-18 Accomplishments • Approved Fiscal Year 2017-2018 CIP ~ $31,750,547 • Completed Fiscal Year 2017-18 CIP ~ $18,370,195 Lake Havasu City Page 2 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 Fiscal Year 2017-18 Accomplishments - Analysis/Plans/Studies (7) • Water Master Plan • Arc Flash Study & Implementation • Landfill Evaluation • ADEQ Voluntary Remediation Plan • Reuse O&M • Aquatic Center Improvements (Natatorium) • Airport Master Plan (*Started, 24 months) Fiscal Year 2017-18 - Design Projects (23) • Airport Electrical Vault • Airport Erosion and FOD Control • Airport Runway Drainage • SARA Park Phase I & II • Rotary & London Bridge Beach Park Restroom and Utility Upgrades (6) • Havasu Riviera Street & Utility Improvements • Havasu Riviera S95 Intersection • Downtown Utility & Review • Booster Station 1C • 2017 Water Main Replacements • Tank Rehabilitation (C-2-17, S-1C-25) • 2018 Tank Improvements (N-1B-03, N-11A-05, N-2A-07, N-3A-08) • Mulberry WWTP Aeration Basin • FEMA CTP Grant – LHC City Limits Modeling • Water Conservation & Reuse Improvements (Redesign) • Lake Havasu Avenue Widening (WACOG) • Swanson Avenue Improvements (WACOG) Fiscal Year 2017-18 - Construction (11) • Airport Electrical Vault • Airport Erosion and FOD Control • Airport Runway Drainage • Cypress Park • 2015/16 Water Main Replacements • 2017 Water Main Replacements • Wash Stabilization Package 1 & 2 • Mulberry Aeration Basin Repairs • Channel Bollard Replacement • Station 2A-06 Tank Replacement • Tank Rehabilitation (C-217, S-1C-25) Lake Havasu City Page 3 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 Mr. Froslie stated before reviewing the projects, Mr. Sweeney would be talking about some of the financial challenges that staff has had to overcome to develop the five-year CIP program. Mr. Sweeney stated that the five-year CIP in front of council is balanced and funded using available resources. He reviewed the following for council: 5-Year Plan is Balanced and Funded • $74.6M Investment in the Community • No “Unfunded” Category of Projects • No Debt Issuance to Accomplish Plan • Leveraging Fund Balances Constrained by Expenditure Limitation • Fiscal Year 2018-19 CIP and Operating Budget (review on May 3) are under the limit • Recommending projects with no/minimal over head & maintenance (O&M) in case PBA does not pass • Debt issuance necessary should Permanent Base Adjustment (PBA) not pass Mr. Sweeney stated there is a larger list of desirable projects that cannot be met with the existing resources. He added that staff leveraged the fund balance capacity and were able to complete the plan without the issuance of any debt. He said it is important not to add any future strain to the budget moving forward until after the August 28 election regarding PBA as well as understanding economically if the models moving forward are actually going to come to fruition. Mr. Sweeney noted as a reminder to the council and community that a fund balance is built over time using surplus’ from either the operating budget or the CIP and is not money that you can expect to have year after year. Mr. Sweeney noted as Mayor Nexsen had indicated if the PBA does come into play, that will not take effect until Fiscal Year 2019-20 so we need to ensure that any plan that staff puts in front of the council and community for Fiscal Year 2018-19 fits under the statutory limit. He added that the plan before council for Fiscal Year 2018-19 as well as the proposed operating budget that will be presented to the council next week does fit within that Expenditure Limitation and can be accomplished without incurring additional debt. Mr. Sweeney stated that staff was able to accomplish that by recommending projects that had no or minimal impact to the O&M budget. He said additionally if the PBA does not pass, staff will need to look at some sense of financing or revenues in order to deal with the plan moving forward. Summary of 5-Year Plan: Program Lake Havasu City Page 4 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 • CIP Program Fiscal Years 2019-23 Program Area • Water $28.0 million • Streets $14.8 million • Drainage $10.0 million • Community Investment $7.1 million • Wastewater $6.8 million • Parks $5.7 million • General Government $1.7 million • Airport $0.5 million Summary of 5-Year Plan: Source of Funds Mr. Sweeney stated that of the $75 million program, the largest component is the Irrigation and Drainage District (IDD) which comes from a variety of funds from flood control funding for drainage items, water revenue that our customers are paying, and the IDD property tax. He added that the second largest component of the plan is coming from the General Fund and are resources that are not dedicated to the CIP but are fund resources available due to fund balance growth over years which is approximately $38 million to begin the Fiscal Year 2018-19. Mr. Sweeney congratulated Senior Budget Analyst Cassandra Clow for all of the work that she has done on the financial elements of the CIP as well as everyone else on the Administrative and Finance team. Mr. Sweeney turned the presentation over to Mr. Abbott to review the detailed projects in the proposed CIP. CIP 5-Year Project Overview Mr. Abbott stated that he wanted to reiterate how staff goes about developing the CIP. He said that the Engineering and Community Investment Departments work with all of the departments in developing the CIP. He added there is a lot of conversation throughout the fiscal year and this is a cyclic process because as soon as it is approved in June, staff starts to look at the next five-year CIP so it is a living document. Mr. Abbott stated that staff’s approach was to focus on existing infrastructure that requires improvements and limit the amount of new O&M that would be brought on by any new development or new project. He said he would give an overall five-year perspective of the projects and then get into the more detailed upcoming Fiscal Year for 2018-19 projects. Mr. Abbott reviewed the following for council: Drainage Improvements • DR1030, Havasupai Wash 3 • Fiscal Year 2018-19 Design • Fiscal Year 2019-20 Construction • Total Cost $3,597,597 Lake Havasu City Page 5 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 • DR1020, Avalon Drain 2 • Fiscal Year 2019-20 Design • Fiscal Year 2020-21 Construction • Total Cost $1,875,000 • DR1040, Havasupai Wash 6 • Fiscal Year 2020-21 Design • Fiscal Year 2021-22 Construction • Total Cost $2,315,000 • DR1050, Daytona Wash 4 • Fiscal Year 2021-22 Design • Fiscal Year 2022-23 Construction • Total Cost $2,000,000 • DR1060, Kiowa Drain 3 • Fiscal Year 2022-23 Design • Construction (Beyond 5 Year CIP) • Total Cost $175,000 Wastewater Improvements • SS2970, Water Conservation & Reuse Improvements • Fiscal Year 2018-19 Construction • Total Cost $2,450,000 • SS3010, Mulberry WWTP Tertiary Capacity Increase • Fiscal Year 2018-19 Design • Fiscal Year 2018-19 Construction • (Design/Build) • Total Cost $650,000 • SS2720, Island WWTP Flow Equalization Basin • Fiscal Year 2019-20 Design • Fiscal Year 2020-21 Construction • Total Cost $3,705,000 Street Reconstruction • ST3270, Lake Havasu Avenue Reconstruction • Fiscal Year 2018-19 Construction • Total Cost $3,790,000 • ST2860, Swanson Avenue Improvements • Fiscal Year 2018-19 Construction • Total Cost $111,235 (WACOG) • ST1, Major Street Construction (Downtown) • Fiscal Year 2021-22 Design • Fiscal Year 2022-23 Construction Lake Havasu City Page 6 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 • Total Cost $10,165,000 • Includes limited utility rehabilitation Mr. Abbott noted that the amount in the downtown project that is currently identified is not the amount that would be required for a total reconstruction as staff has presented in the past but is $10,165,000 to ensure that we have a balanced CIP. Water Improvements • WT6020, Second Ranney Well • Fiscal Year 2018-19 Design • Fiscal Year 2019-20 Construction • Total Cost $5,112,181 • WT7410, WAPA Water Main • Fiscal Year 2018-19 Construction • Total Cost $1,450,000 Councilmember Groat asked, in addition to the second Ranney Well, if staff was considering vertical groundwater wells as part of the budget. Mr. Abbott stated what staff identified in the project, the main component, would be a second Ranney Well. He added the goal would be to identify a location and build a second Ranney Well to ensure back-up and provide additional water resource potential if the need arises. Councilmember Groat asked how much water would be available from the north wells. Mr. Abbott said he did not have that information but could provide that to him. Mr. Abbott continued review of the following CIP projects: • 5-Year Water Main Replacements • Alternating Design/Construction • Total Cost $6,268,500 • WT7440, Booster Station 1C • Fiscal Year 2018-19 Construction • Total Cost $3,000,000 • WT7470, 2018 Tank Improvements (N-1B-03, N-1A-05, N-2A-07, N-3A-08) • Fiscal Year 2018-19 Construction • Total Cost $1,890,000 • WT7480, 2019 Tank Improvements (S-1C-24) • Fiscal Year 2018-19 Construction • Total Cost $2,000,000 • WT8540, 2020 Tank Improvements (N-4A-11 & C-3-20) • Fiscal Year 2018-19 Design • FY 19/20 Construction Lake Havasu City Page 7 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 • Total Cost $2,000,000 Other Improvements • AP1790, Airport Master Plan • 3 Fiscal Years (24 months) • Total Cost $558,000 • FA1050, Vision 20/20 Projects • Environmental Learning Center • Downtown Catalyst Project • Total Allocated $3,200,000 • PR2070, Havasu Riviera (280) • Fiscal Year 2018-19 Construction • Total Cost $5,037,33 • FA1060, Rotary & London Bridge Beach Parks Improvements • Fiscal Year 2018-19 Construction • Total Cost $1,550,290 • PR1060, Rotary Community Park Expansion Land Acquisition • Fiscal Year 2018-19 Purchase • Total Cost $1,357,000 Fiscal Year 2018-19 Specific Project Overview Mr. Abbott reviewed the Fiscal Year 2018-19 projects for council. Airport • Airport Master Plan Update, AP1790 • 95.53% Grant Funded Project • Total $558,000 • 24-month Schedule, Spans 3 fiscal years Wash Stabilization • Havasupai Wash 3, DR1030 • Total Project Cost $3,632,597 Parks & Recreation • Rotary & London Bridge Beach Parks Improvements, FA1060 • Building Age (+/- 25 Years) • ADA In response to Councilmember Groat’s question, Mr. Abbott explained that the ADA upgrades will ensure that any new stalls that are built or added follow current 2018 standards as far as room, bars for movement, and access to sinks and any other facilities. Lake Havasu City Page 8 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 He added another aspect is external access to the restroom facilities and are incorporated in the project as well. Councilmember Lin asked where the new restroom would be located, to which Mr. Abbott replied that the proposed location would be by the drop-off circle where the current restroom and concession is located. He said the goal is to make improvements to that existing structure for concession and umpire use and then create a new separate bathroom adjacent to that existing building. • Rotary community Park Expansion Land Acquisition, PR1060 • 9 Acres • Expires March 2020 • Constructed 2015 • $1.2 Million Transportation/Street • Havasu Riviera Street & Utility Improvements, PR2070 • Havasu Riviera (280) Intersection, ST2630 • Lake Havasu Avenue Reconstruction, ST3270 • Hawk Light (Acoma/Pima), ST3290 WACOG Funded Projects • Swanson Avenue Improvements, $111,235 • Construction Match Only Lake Havasu Avenue Reconstruction Project • Improvements • Improve traffic flow and safety • Removes ability for all left turns (except at intersections) • Utility Improvements • Utility Improvements • Water, Sewer and Stormwater • Public Outreach and Business Meetings • Design • Construction Impacts Mr. Abbott explained that the project is between Mesquite Avenue and Swanson Avenue on Lake Havasu Avenue and includes reconstructing the roadway section, improvements to the utilities in that corridor, and a median through the center to eliminate left turns. He noted that there was substantial public outreach and input with this project. Councilmember Lane said for clarification, the elimination of left turns would only be left Lake Havasu City Page 9 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 turns other than at intersections. Crosswalk (Acoma/Pima) ST3290 Mr. Abbott stated this would be a High Intensity Activated Crosswalk (HAWK) and is a combination of beacon flashers and traffic control so when a pedestrian goes to cross that intersection, they hit the button, lights start flashing red and traffic is required to stop while the pedestrian crosses the roadway. He added this is a Highway Safety Improvement Program (HSIP) grant funded project with no impact to the City’s budget. Wastewater System Improvements • Mulberry WWTP Tertiary Capacity Increase, SS3010 Mr. Abbott defined tertiary as the third step in the wastewater treatment process which is a high filter process. He explained that the current system is designed to only handle the capacity of the plant and when one of the filters is in backwash cycle it tends to restrict the flow. He noted that this project would increase the filter capacity to peak capacity so when certain stages are backwashing, staff would still be able to treat the amount of flow the plant is designed handle. • Water Conservation & Reuse Improvements, SS2970 Mr. Abbott stated that staff is in the fourth year since the Reclaimed Water Management Study, that was done in January 2014. He said the study identified potential uses for the City’s reclaimed water and if there was enough to irrigate various parks within the city. Mr. Abbott explained that once those parks are treated with reclaimed water they cannot go back to potable water, and that is why staff wants to make sure there is enough reclaimed water to irrigate throughout the year, especially during the summer high demand months. Water System Improvements • Booster Station 1C Improvements, WT7440 • 2018 Tank Improvements (N-1B-03, N-1A-05, N-2A-07, N-3A-08), WT7470 • 2019 Tank Improvements (S-1C-24), WT7480 • 2019 Water Main Replacement Project, WT7460 • Second Ranney Well Site, WT6020 • WAPA Water Main, WT7410 Conclusion • Fiscal Year 2018-19 - $23,861,773 • Fiscal Year 2019-20 - $15,817,250 • Fiscal Year 2010-21 - $11,465,000 Lake Havasu City Page 10 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 • Fiscal Year 2021-22 - $9,075,000 • Fiscal Year 2022-23 - $11,465,000 • Total 5 Year CIP - $71,684,023 Mr. Abbott noted that $24 million in Fiscal Year 2018-19 is large for one year but said approximately 78 percent of that dollar value is actually currently underway, bid ready, under contract, or under construction. Councilmember Lin asked about the Vision 20/20 and the SARA Park Ballfield improvement projects. Mr. Abbott stated that both projects are not identified in next fiscal year’s CIP. Mr. Knudson stated that staff looked at the amount of resources that were available for the next five years and determined top priority in terms of promises the City has made to its residents and identified $3.2 million in City financing for the Eco Environmental Learning Center (Center) as well as the Downtown Catalyst Project. He said staff feels there will be some opportunities specifically with regards to the Center to identify some funding partners that can assist with funding that will lessen the cost of the facility and whether the City contribution would be $1.6 million more or less. Mr. Knudson stated that would be part of that discussion as staff receives more information from the study that is currently underway. Mr. Knudson stated regarding the Downtown Catalyst Project, there are still a lot of unknowns in terms of what the City’s contribution would be; however, staff wanted to identify some dollars for that project. He said there may be the opportunity for dollars to come back to the City after a portion of the land is parceled off and sold to the private sector if that is the direction the council wants to go. Mr. Knudson said there are some unknowns tied to those two projects so what staff did is identify $3.2 million for both of those projects in a combination and then allow for conversation to occur with council in terms of what direction we want to go with either one of those projects. Mr. Knudson said in terms of SARA Park, staff looked at total buildout of SARA Park to include ballfields as well as a number of soccer fields. He said because the City just constructed Cypress Park and introduced five new soccer fields to the community, the thinking behind the revised scope at SARA Park, at least for now is things may get modified and evolved and come back year after year. He said just because it is not identified specifically in the CIP right now does not mean staff is not talking about those things throughout the year. Mr. Knudson added because five new soccer fields were introduced that will give staff an opportunity to look at twelve months of data and determine the demand coming from the community. He stated that the $2.75 million identified for SARA Park includes the construction of a new ballfield with all of the amenities, including parking and grading, that are tied to that site and also includes design costs for that project. Lake Havasu City Page 11 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 Mayor Nexsen stated one alternative to move SARA Park up in the CIP, assuming that Prop 409 passes, would be to do a borrowing that is a little longer term in Fiscal Year 2019-20 and use those funds for SARA Park or another project. He added that until we know the outcome of Prop 409, accelerating any projects that have a high level of maintenance would be a mistake. Mayor Nexsen said if Prop 409 passes it will go into effect July 1, 2019 but if it does not pass the discussion will have nothing to do with what projects we accelerate, but will have everything to do with what projects we cancel. Councilmember Groat asked if a huge component of the SARA Park project was soccer fields. Mr. Knudson stated absolutely and said a large component of Phase I and Phase II of SARA Park is the immense financial impact of grading the two phases and make it useable for soccer plus the grass and parking areas and added the more grass that is planted, the more it will cost to maintain. Councilmember Groat said if the soccer fields at Cypress Park are in fact what we need for the community and we do not need more soccer fields, could we forego much of that grading and move right into considering the enhancements for the infrastructure for the existing softball fields and hardball field. Mr. Abbott stated that based on Prop 409 passing, the $2.75 million is just a component to ensure that the City has a balanced CIP and in lieu of moving forward with Phase I and Phase II as previously planned, staff would go back and look at only doing small pieces of this project with the intent over time to ultimately build that out. He added that based on the Fields Needs Assessment and the construction of Cypress Park, the next need was for baseball and softball fields. Councilmember Groat said if the City has enough soccer fields and is able to forego all the grading and expenses, would the RC Club and their airfield be able to remain in place. Mr. Abbott stated that would be a possibility and added that one of the things even prior to this funding hurdle is with Phase II. He said even looking at the money we would save grading the Phase I and II areas, it is cutting out a portion around where those current tarmacs are for the RC airplanes and make adjustments to ensure that they would have proper approach areas to utilize the RC tarmacs until we know whether Phase II is actually going to happen. Councilmember Lin stated that Page 5 of the City’s budget includes design work and construction to help fund the Center and for the Downtown Catalyst Project and wondered why those two projects were lumped together in the amount of $3.7 million. Mr. Abbott explained the reason those two projects are lumped together is because staff has not identified what the City is going to do with those projects. He added they are currently working on a feasibility study for the Environmental Learning Center and at this time staff does not know what the cost of the facility will be or what the City’s portion will be. Mr. Abbott stated that the projects are dependent on all of the stakeholders that contribute and get involved with that process so this essentially is a pot that based on Lake Havasu City Page 12 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 addressing all of the other needs within the CIP, staff felt we could do without borrowing money to put towards those projects. Mr. Abbott added what Councilmember Lin is seeing is the carry-forward for design on Page 5, which are the funds that were gifted from America’s Best Communities (ABC) winnings. Mr. Knudson stated that as Mr. Abbott eluded to, staff does not have all of the information in terms of what the costs will be so we tried to identify an approach that is going to allow the most flexibility in terms of the information that we receive over the course of the next few years and then allow council with ample opportunity to direct where we want to go with each of these two projects. He added that staff wanted to identify some dollars for both of the projects and then allow council to come back and direct staff with the resources that are earmarked for those projects. Mayor Nexsen stated another piece to the downtown project is that the City will be selling off part of that property so those additional resources can be utilized for the downtown project and possibly free up dollars somewhere else. He added if we knew who the stakeholders were going to be and other partners, we could probably put some firm numbers on this but until that occurs, all we have are placeholders that could be pushed either way depending upon which comes first. Councilmember Groat said he thinks of the Eco Environmental Learning Center as the Havasu Water Research Center because there is a need to replace the wet lab at the Mulberry Treatment Plant and extend the water panels, and sees this as more of a hard spin on the infrastructure for our water quality and other things being pieces that you can add on that are nice to have but the need to have here is the water quality research piece. Mr. Abbott stated that the council did award a contract with Jones Studio to start the feasibility study which is compiling the City’s stakeholder list as far as potential partners and stakeholders that will be involved in this process. Mr. Abbott stated that the ultimate goal is to solidify who is going to be involved in this facility, which will drive the size of the facility, the needs of the facility, and will provide and dictate how are we going to fund it, operate it, and construct it over time. Councilmember Groat asked if some of the major objectives would be to replace the Mulberry wet lab and expand the test panel, to which Mr. Abbott stated absolutely and added that City staff Chemist Thilak Fernando and Dr. Doyle Wilson will also be included in the process to identify space needs, future equipment needs, and/or locations. He stated the lab as a whole from the City’s perspective would be more or less our anchor for the Environmental Learning Center. Councilmember Lane said he appreciates that staff has brought forward a plan that can be funded moving forward but said his concern is going to be with the operating budgets of Lake Havasu City Page 13 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 the city services that we already have. He said that is where a lot of issues will lie because we have to be able to maintain and operate the systems we already have such as emergency services and Parks & Recreation and everything that is going on in the city. Councilmember Lane stated that he appreciates that the plan maintains within the finances that we are going to have based on the Expenditure Limitations but expressed concern moving forward with the overall budget for the city and our operations. Mr. Knudson stated in terms of direction where we are at, staff will come back with the CIP at a later date and then as Councilmember Lane eluded to we will be coming back next week with regards to a work session on the budget as a whole. He said obviously staff has had conversations making sure there is a linkage and synergy between those two documents and identified projects in the CIP that are going to affect our operations and are making those changes within the budget. Mr. Knudson stated for now, any type of direction in terms of where we are would be helpful but we will have additional opportunities in the next few weeks and additional work sessions to have discussions as well. Councilmember McCoy stated as with Councilmember Lane she also appreciates the hard work that has gone into putting together a clear and concise CIP package and thanked staff for their efforts. Councilmember Groat stated Councilmember Lane’s observation is very valid and believed that as we get into further discussions of the budget we are going to have some conversations about some of the issues related to our ongoing operations. He stated he is leaning in the direction of public safety, training, maintenance, things that we have foregone because we have been under some amount of budget constriction in the past. Councilmember Groat stated that the reason he mentioned the Havasu Research Center in the sense that it is really a water lab that we need to replace and add to, and the other components of it are not necessary, they are not needs to have they are nice to have. Mayor Nexsen stated in terms of the Center the feasibility study is to find out who the stakeholders are and who is bringing a checkbook so for them it is a need to have it is not a want to have by our citizens. He stated he did not disagree that the Mulberry lab is need of repair but said it is important to not look at the rest of the project as a “nice to have” because somebody else is writing the check. Mayor Nexsen stated that when it comes to the botanical gardens, there is discussion of a private foundation that will be creating that, not the city and added that he did not want to make it sound like suddenly this Center is a want to have that the taxpayers are paying for. He added we are combining our efforts with other stakeholders who are bringing a checkbook and wanted to make that abundantly clear because otherwise there will be this confusion that we are going to be spending all of this money on something we really do not need and that is really not the case, we are going to have stakeholders. Mayor Nexsen stated if we cannot find Lake Havasu City Page 14 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 stakeholders, we are going to have to go in another direction. Councilmember Lin asked how long the feasibility study would take, to which Mr. Abbott stated staff has projected to have that study completed in August of this year. Councilmember Lin stated she was pretty sure Councilmember Groat understands that this is a stakeholder project but said he made an important point regarding the lab and asked if the lab is 40 years old, to which Mr. Abbott replied yes and added that is a project that the city should be looking at whether there are stakeholders or not. Mayor Nexsen said he was not suggesting that but added what Councilmember Groat stated is we ought to be working on the lab and then everything else is a nice to have. He said what he was suggesting is not only should we be looking at the lab, but the rest of it will hopefully be paid for by somebody else, not the taxpayers. Mayor Nexsen stated it is critically important that we keep that up to date and if we cannot build that building, we still have to look at upgrading the lab somewhere else. Councilmember Lin asked if staff had any idea how much it would cost to build a new lab. Mr. Abbott stated he could not guess at this point but added it would not be a small project. Councilmember Groat offered his apologies if he was not clear enough in making the link between compartmentalizing or modularizing the project and the nice to haves. He stated nice to haves in modularization theory allows you then to find those private partners but stated the piece he is most concerned about is our water quality. Vice Mayor Sheehy stated for those listening at home when it comes to water quality the whole discussion about this Center was because of that. He stated the city understands the importance of that and have already started those conversations and added it is important to remind everyone that this conversation has been ongoing for multiple years and that is why it was included as one of the pillars in the ABC Competition. Vice Mayor Sheehy stated as far as direction from the council he is very comfortable with the way staff put together the CIP and the biggest focus obviously for this next year is with the Prop 409 Expenditure Limitation. He added staff has laid out a really great plan that is funded, and as Mr. Abbott had mentioned earlier it is a living document and we are looking at a five-year scope so we can kind of see an elevated look. Mayor Nexsen stated he agreed with Vice Mayor Sheehy. 6. CALL TO THE PUBLIC Mr. Doug Carr stated he was before Council to request Fiscal Year 2019-20 CIP funding for pickleball courts. He stated that their association has raised over $30,000 for four more pickleball courts and they are looking to reach $50,000 by next spring. He said Proposition 409 needs to pass so hopefully the city does a good job of explaining it and the people of Lake Havasu pass that. 7. ADJOURN Lake Havasu City Page 15 Printed on 5/9/2018 City Council Minutes - Final April 26, 2018 Upon motion by Councilmember Lane and seconded, the meeting adjourned at 10:50 a.m. CERTIFICATION I hereby certify that the foregoing is a full and true copy of the CIP Work Session Minutes of the Lake Havasu City Council held on the 26th day of April, 2018. I further certify that 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 16 Printed on 5/9/2018