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, June 26, 2018 6:00 PM 1. CALL TO ORDER Mayor Nexsen called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Ryan Speakman, Living Word Family Church Pastor Ryan Speakman with Living Word Family Church 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 Ms. J’amie Morgaine addressed the Council and said she is a Kingman resident and was in attendance to address Mayor Nexsen. Ms. Morgaine said she attended a “Meet the Legislative Candidates” event in Lake Havasu City on June 24, 2018, which was an event that had been advertised as an open public event by Facebook and Today’s News Herald (havasutimes.com) calendar. She said she was quite surprised when she first found the event as she is a legislative candidate for District 5 (District) and had not been invited to speak; however, she said she is also a constituent with two votes to cast for House Representative seats so she attended the event so that she could make an informed choice with her second vote. She said at the event, Senator Sonny Borelli stated that the candidates would be speaking shortly and that is when Mayor Nexsen abruptly intruded into their conversation indicating that it was a private event, heavily implying that she should leave. She said she clarified that the event had been advertised as a public event, but Mayor Nexsen said it was a private fundraising event and if she wanted to stay she would need to make a contribution to Senator Borrelli’s campaign. She said she asked for clarification that the event was a “Meet the Legislative Candidates” event as it had been advertised and Mayor Nexsen abruptly told her that she would not be asked to speak. Ms. Lake Havasu City Page 1 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Morgaine said she had not expected to speak and was there to listen to what the legislative candidates had to say, and said that is when Mayor Nexsen told her that she could find a corner and listen from there. Ms. Morgaine said as the mayor he is supposed to be the emissary of Lake Havasu City, and asked if this is how he treats a senate candidate for our legislative district? She said she did not leave, did not contribute to Senator Borrelli’s campaign, and most certainly did not stand silently in the corner of the room. Mr. Morgaine said as uncomfortable as the event was to attend, she is glad that she let her physical presence serve as a reminder that republicans are not the only candidates in the District. She said all three candidates talked about the importance of teamwork and working together to solve the problems to face our District. She said this is exactly the kind of spree décor that we need to face what lies ahead. She said the larger context to what happened at this event is that we are divided as a nation and as a community by the color of our party affiliation. She said the polarization of our parties is growing deeper and becoming more divisive every day. Ms. Morgaine said it was this divisive disease that prompted Mayor Nexsen to treat her as a democratic candidate in such a disrespectful and inappropriate manner. She said we cannot afford to let this divisive disease continue to grow and divide our community. She said we have only three legislative representatives at the Capitol to advocate the needs of two counties while one county has at least 30 representatives advocating for their interests, and they all want our water. She said this is the common ground that unites us as a District, irrespective of party affiliation. She stated that the next senator of this District will either be her or Sonny Borelli, and asked Mayor Nexsen to move forward in building relationships with democratic candidates just as respectfully as he has with republican candidates because at the end of the day we are all on the same team, and when it comes to fighting for our District’s water we are going to need everyone working together. Mayor Nexsen stated that the event was a fundraiser for republican candidates. Ms. Mary McCord Robinson addressed the Council regarding the behavior of Mayor Nexsen at the “Meet the Legislative Candidates” event. She said the advertisement indicated that “fundraising is optional” and was not advertised as a fundraising event; therefore, when Ms. Morgaine shared with her the behavior that Mayor Nexsen demonstrated, her first reaction was improper behavior of a mayor for a city council that is supposed to be nonpartisan. She said that is the council’s role and they cannot step in and step out at their convenience. She said she also noticed that there were two republican candidates who were not at the event and questioned if they were invited, as she too is a candidate and was not invited. Ms. Robinson said it is the council’s role to be good role models and, as the mayor, he is the highest level position and represents the district widely. She said she thinks he lacked integrity, trust, and respect. Lake Havasu City Page 2 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Mr. Mark Zieff addressed the Council and said he serves on the Parks and Recreation Advisory Board and asked if the Council could support an effort in creating a pros and cons list for possibly looking into districts versus departments in the future. He said if the City were to divide into districts for police and fire it could potentially free up the budget and spending so the City would not be dependent on passing a Permanent Base Adjustment. Mr. Zieff said Bullhead City has a fire district and thought the City could look into creating one in Lake Havasu City. 6. CONSENT AGENDA 6.1 ID 18-1687 Approve the June 12, 2018, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 18-1676 Adopt Resolution No. 18-3233 Authorizing the Vacation and Sale of Parcel D, a 20-Foot by 250-Foot City Owned Roadway, Adjacent to Lots 16 & 17 of Block 2, Tract 2211, Creating a Larger Commercial Property (Stuart Schmeling) 6.3 ID 18-1679 Adopt Resolution No. 18-3234 Approving and Authorizing the Vacation and Sale of a Portion of Parcel B, a 60-Foot by 270-Foot Roadway, Located between Lots 19 and 20 of Tract 2372, Block 1, to Create Larger Residential Lots (Stuart Schmeling) 6.4 ID 18-1677 Adopt Resolution No. 18-3235 Approving Amendment No. Two to the Intergovernmental Agreement with the Arizona Department of Transportation for Administration and Construction of Improvements to Lake Havasu Avenue (Jeremy Abbott) 6.5 ID 18-1655 Adopt Resolution No. 18-3226 Approving Lease Agreement with Mohave County for Use of the Consolidated Court Building Fiscal Year 2018-19 (Mitchell Kalauli) 6.6 ID 18-1689 Adopt Resolution No. 18-3238 Approving and Authorizing the City Manager to Execute the Arizona State Purchasing Cooperative Agreement (Lynette Singleton) 6.7 ID 18-1675 Adopt Resolution No. 18-3239 Abandoning the Northerly 6.5 feet by 99.71 feet of the 14.5-foot Public Utility and Drainage Easement Along the Southerly Property Line of Lot 43 and the Northerly 6.5 feet by 110.3 feet of the 14.5-foot Public Utility and Drainage Easement Along the Southerly Property Line of Lot 32A of Grand Island Estates Parcel E (Stuart Schmeling) 6.8 ID 18-1697 Approve Amendment No. 1 to Professional Services Contract with Lake Havasu City Page 3 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Whitney & Whitney PLLC for Public Defender Legal Services (Mitchell Kalauli) 6.9 ID 18-1685 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, July 10, 2018 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, seconded by Vice Mayor Sheehy, 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 18-1688 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. 7.2 ID 18-1686 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Lake Havasu City earned the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association for its Comprehensive Annual Financial Report (CAFR). • Lake Havasu City Veterans Treatment Court was awarded its second year of federal grant funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) in the amount of $298,643.58. • On Wednesday, June 20, 2018, City representatives attended the legislative water hearing in Kingman, Arizona, to join forces with other representatives and dignitaries from Mohave County interested in protecting our Colorado River water rights. • On June 25, 2018, CCRSCo attended the Gene Field Camp Whitsett Intake Pumping Station at Parker Dam. • On June 21, 2018, Lake Havasu City participated in the World’s Largest Swim Lesson. • On June 26, 2018, Steve and Debbie Torina, residents, were recognized by the City for their water conservation efforts. • City offices and facilities will be closed on Wednesday, July 4, 2018, in observance of the Independence Day holiday. 8. PUBLIC HEARINGS Lake Havasu City Page 4 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 8.1 ID 18-1652 Adopt Resolution No. 18-3230 Appointing Member(s) to the Lake Havasu City Airport Advisory Board (Kelly Williams) Ms. Williams advised that the City received one application requesting consideration for reappointment as a regular pilot member to the Airport Advisory Board. She said the appointment is necessary to fill the expiring term of a regular pilot member. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Sheehy moved to adopt Resolution No. 18-3230 appointing Shannon Stebbens as a regular pilot member to the Airport Advisory Board with a term ending June 30, 2021, 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 8.2 ID 18-1653 Adopt Resolution No. 18-3231 Appointing Member(s) to the Lake Havasu City Planning & Zoning Commission (Kelly Williams) Ms. Williams advised that the City received seven applications requesting consideration for appointment to the Planning and Zoning Commission. She said the appointments are needed to fill the upcoming vacancies of three regular members and two alternate members. Mr. Danny White, applicant, addressed the Council and said that he is commercial realtor in Lake Havasu City and is wanting to contribute to the community. He said he felt his skillset as a commercial realtor could be an asset to the Commission. Mayor Nexsen asked Mr. Leo Biasiucci, applicant, if he was interested in a regular member or alternate member position, to which Mr. Biasiucci said if appointed, he would prefer an alternate member position. Mayor Nexsen asked the councilmembers for their recommendations for the three regular member positions. Councilmember Lane recommended Mychal Gorden, Lucas Still, and Jim Harris. Councilmember Groat recommended Jim Harris, Mychal Gorden, and Christy Cunningham. Lake Havasu City Page 5 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Vice Mayor Sheehy recommended Jim Harris, Lucas Still, and Mychal Gorden. Mayor Nexsen recommended Mychal Gorden, Jim Harris, and Lucas Still. Councilmember Coke recommended Lucas Still, Mychal Gorden, and Jim Harris. Councilmember McCoy recommended Mychal Gorden, Lucas Still, and Suzannah Ballard. Councilmember Lin recommended Jim Harris, Mychal Gorden, and Suzannah Ballard. Ms. Williams said Mychal Gorden (with seven recommendations), Jim Harris (with six recommendations), and Lucan Still (with five recommendations) received the highest number of recommendations. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to adopt Resolution No. 18-3231 appointing Mychal Gorden, Jim Harris, and Lucas Still as regular members to the Planning & Zoning Commission with terms ending June 30, 2021, 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 Mayor Nexsen asked the councilmembers for their recommendations for the two alternate member positions. Councilmember Lane recommended Suzannah Ballard and Danny White. Councilmember Groat recommended Danny White and Leo Biaisucci. Vice Mayor Sheehy recommended Danny White and Suzannah Ballard. Mayor Nexsen recommended Danny White and Suzannah Ballard. Councilmember Coke recommended Suzannah Ballard and Leo Biasiucci. Councilmember McCoy recommended Suzannah Ballard and Danny White. Councilmember Lin recommended Danny White and Suzannah Ballard. Lake Havasu City Page 6 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to adopt Resolution No. 18-3231 appointing Suzannah Ballard and Danny White as alternate members to the Planning & Zoning Commission with terms ending June 30, 2020, 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 8.3 ID 18-1654 Adopt Resolution No. 18-3232 Appointing Member(s) to the Lake Havasu City Parks and Recreation Advisory Board (Kelly Williams) Ms. Williams advised that the City received three applications requesting consideration for reappointment as regular members to the Parks and Recreation Advisory Board. She said the appointments are necessary to fill the expiring terms of three regular members and one student member. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to adopt Resolution No. 18-3232 appointing Ashley Pascual, Charles Vaughn, and Robert Smith, Sr., as regular members to the Parks and Recreation Advisory Board with terms ending June 30, 2021, seconded by Councilmember Lin, 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 18-1631 Adopt Resolution No. 18-3236 Amending Resolution Nos. 17-3186 and 17-3155 Transferring Budget Appropriations from One Fund, Department, or Division to Another for Fiscal Year 2017-18 (Jill Olsen) Administrative Services Director Jill Olsen advised that this is the last budget amendment for the current fiscal year. She said the amendment includes closing out the memorial tree fund and the police vehicle towing fund, and moving the fund balance and budget appropriations to the General Fund. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Sheehy moved to adopt Resolution No. 18-3236 amending Resolution Lake Havasu City Page 7 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Nos. 17-3186 and 17-3155, and approving the budget amendments listed on schedules D, E and F for Fiscal Year 2017-18, seconded by Councilmember Coke, 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 18-1674 Truth in Taxation Hearing and Public Hearing on the Proposed Fiscal Year 2018-19 Property Tax Levy (Jill Olsen) Ms. Olsen advised that state law requires a public hearing for truth in taxation for the property tax rate and the levy. She highlighted the following in her presentation: • City tax rate is not changing for FY 2018-19. • Property taxes collected by the City help fund City services like police, fire, parks and streets. • About 7.5 cents of every dollar paid by Lake Havasu City property owners goes to the City. • Levy Rate – FY 2017-18: $0.6718 per $100 assessed value Levy Rate – FY 2018-19: $0.6718 per $100 assessed value Assessed Value – FY 2017-18: 655,833,860 Assessed Value – FY 2018-19: 693,932,809 Levy $ Amount – FY 2017-18: $4,405,892 Levy $ Amount – FY 2018-18: $4,661,841 • The additional annual tax on a home with an assessed value of $100,000 would be $2.73. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to approve a motion to levy the proposed Fiscal Year 2018-19 Property Tax and to assess the levy at the July 10, 2018, City Council meeting, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Nexsen, Councilmember Coke, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Vice Mayor Sheehy ID 18-1699 Adjourn to Special Meeting Mayor Nexsen stated that state law requires the final budget be adopted in a special meeting. Councilmember Coke moved to adjourn to special meeting, seconded by Lake Havasu City Page 8 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 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 8.6 ID 18-1632 Adopt Resolution No. 18-3237 Adopting the Fiscal Year 2018-19 Final Budget (Jill Olsen) Ms. Olsen advised that the tentative budget was published in the newspaper on June 17 and 24, 2018, as required by law. She said the Council may change or reduce the amount of the final budget, but cannot increase the amount. She said changes made to the legal documents since adoption of the tentative budget include the added Fiscal Year 2017-18 budget amendment under “Expenditure Adjustments Approved 2018” on Schedules E and F. Ms. Olsen concluded that the final budget brought before the Council is a balanced budget and is within the expenditure limitation. Ms. Olsen said the total revenues for Fiscal Year 2018-19 is $124,216,164, and total expenditures is $144,585,603. She noted that the Council will meet on July 10, 2018, for the purpose of adopting the tax levy rates for city property tax and special districts. She reviewed the proposed levy rates included in the Fiscal Year 2018-19 final budget for the City Property Tax, Irrigation and Drainage District, Improvement District #2, and Improvement District #4. Mayor Nexsen asked Ms. Olsen to explain why the expenditures exceeding the revenues is not deficit spending, to which Ms. Olsen said the difference is usually from carry-forwards from projects and any additional one-time revenues that the City may have on-hand that may be spent on CIP projects. Mayor Nexsen added that it would also include the carry-over fund balance from the other funds. Mayor Nexsen asked if the budget included any new debt, to which Senior Budget Analyst Cassandra Clow said there is new debt budgeted depending on the outcome of the Permanent Base Adjustment. Vice Mayor Sheehy thanked City staff for presenting a balanced budget that is under the state-imposed expenditure limitation, addresses step-increases for all eligible employees, has money available for recreation to determine a solution for Teen Break, identifies funding sources for the CIP, and commitment to address compression issues in future budget years. Councilmember Lin stated that she wanted to address an item where a large amount of money was taken out of the budget and said that she would like to revert back to the last council meeting. She said there was a heated discussion in regards to some cuts made in Lake Havasu City Page 9 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 the budget, and at one point the topic of SARA Park was addressed. She said at that meeting Mayor Nexsen stated that she personally wanted to take away the sports fields from our children. She said she also believes that she and Councilmember Groat were told to do their homework. Councilmember Lin said she spent some time researching the proposed SARA Park development, and, having sat on the Parks and Recreation Advisory Board for the past two years, reviewed the last two years of meeting minutes to put together a timeline of what she, the Parks and Recreation Advisory Board (Board), and the community were led to believe in the progress of the project. She said she is an advocate for the sports fields for the community; however, at the last meeting she felt that she was targeted for trying to take away something from our community. Councilmember Lin stated that there is a difference between wants and needs, and when our needs are able to be financially fulfilled, including our infrastructure, maintenance of our city, and the compression issues with our City employees, these types of projects can move forward. She said she believes she, the Board, and members of the community were led to believe that the City had all of these issues taken care of and there was money in reserves to pay for a sports complex. She said she is not here because she wants to keep the sports complex in the budget, but to review the minutes from the Board meetings from January 2016 through November 2017 where SARA Park was a topic. She said the Board held a meeting yesterday and members were surprised to hear that the sports complex was taken out of the budget. She highlighted the following from the Board meeting minutes: • March 28, 2016 - Greg Froslie explained that we received a completed fields needs assessment study. He gave a brief overview of the study and the proposed sports fields needed was discussed as a need. • June 29, 2016 – A fields assessment had been completed and Greg Froslie explained that $14 million over a three-year time period for development and improvement was proposed. • September 26, 2016 - Mike Keane discussed that the conceptual designs are in the planning phases and the drawings will be available around January. There were also discussions about it being completed in phases, at least a year and half away from completing new fields. A member of the community spoke and stated that this was discussed at Coffee with the Mayor and was told that this project was important to the City Council and they are planning on going full-board to see the project completed. The Board was concerned with the concept of it being phased in. • October 24, 2016 - It was expressed that City Council wanted to move forward with the SARA Park Complex. • December 19, 2016 – Jeremy Abbott shared an overview of the sports complex with the Board. It was stated that there were $14 million in the current CIP budget for parks improvement and the sports complex. The Chairwoman asked if this year the design phase would be done and the next fiscal year would begin Lake Havasu City Page 10 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 construction. Jeremy Abbott responded this year we are looking at finalizing the concept, going into the next year we will look at starting the actual physical design and depending on timing, we may be able to look at starting some of the construction towards the later part of the fiscal year. • March 27, 2017 – Tabatha Miller did a presentation for the Board on the Expenditure Limitation. Board members wanted to know why this was being brought to them. Questions were asked on how this affects the sports complex. Chairwoman Pascual made a comment that there was a lot of resistance on the assessments, paying into assessments like the fields needs assessment, to put all that money and energy into that and to come up with a plan and all that work we are doing to even get to some of the arguments on the current projects, and then to say, oh by the way we don’t have access to the money that we need for this. • September 25, 2017 – Mike Keane reported that there was a kick-off meeting on August 28 with the engineering firm that showed an overview of the plan of the sports complex. Councilmember Lin said the Board has been led to believe for two years that the sports complex is going to move forward and there were funds to fund the entire project. She said she spoke with staff just this past January and they were under the impression that this project was also going to move forward as originally planned at a tune of over $14 million. She said finding out during the budget sessions that this project, as well as many other city-wide cuts, had been taken out of the budget because we do not actually have the funds to afford it is disturbing. She said she understands quite fully the Expenditure Limitation and also the difference between one-time projects and continual increases with maintenance and salary increase costs; however, she said she does not understand why she, along with the Board members and the community, were led to believe that the City had the funds and would be moving forward with the sports complex. Councilmember Lin said the comment made that she wanted to take the fields away from our children could not be further from the truth. She said she is very pleased with how staff and the new City Manager have pulled this year’s budget together, but said there are still issues that have been left untaken care of. She said the real concern is transparency across our entire system. Mayor Nexsen said he would like to look at the facts. He said the City did commission a fields needs assessment study a few years ago. He said from that study, the City decided to move forward to build Cypress Park and build new baseball and soccer fields at SARA Park. He said the consultants at that time estimated $1.2 million for Cypress Park, but the total cost was $4 million. Lake Havasu City Page 11 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Councilmember Lin stated that $1 million of that was to purchase the property and added that the Board was also not aware of that. Mayor Nexsen said the property was $1 million but the total cost to was $4 million and no one on council objected to the $2.8 million increase to build Cypress Park. Mayor Nexsen added that the consultants estimated SARA Park to cost $10 million, but not it is estimated to be over $20 million. Mayor Nexsen said at the March 2017 Parks and Recreation Advisory Board meeting, Tabatha Miller explained that to build SARA Park would require debt funding. He said SARA Park remained in the 5-year CIP plan with debt funding until the current council directed the City Manager earlier this year to bring forward a budget that was under the Expenditure Limitation and no new debt for projects. He explained that the reason the Council asked to eliminate new debt for funded projects was due to the cost of maintenance. He said this was thoroughly discussed at the April 26, 2018, CIP budget meeting. Mayor Nexsen said as the board liaison on the Parks and Recreation Advisory Board it is her job to deliver those messages to the Board. Councilmember Lin said she only got that message two months ago. Mayor Nexsen asked her if she delivered that message to the Board two months ago, to which Councilmember Lin said she missed that meeting and could not deliver that message to the Board until yesterday’s meeting. Councilmember Lin said she has two years’ worth of meeting minutes that at every meeting the Board was being led to believe that they were getting this project. Mayor Nexsen stated that the Council thoroughly discussed the 5-year CIP plan on April 26, 2018, and discussed the fact that the City put roughly $2.8 million in the CIP budget for SARA Park for a new ballfield and some grading, and that further developments would wait for the Proposition (Prop) 409 results and reassessment of needs based on usage at Cypress Park. Mayor Nexsen said moving forward on SARA Park can be accomplished with debt funding, which has been the plan for a number of years. He said the City originally hoped that it would not be debt funded when the estimates were $1 million for Cypress Park and $10 million for SARA Park; however, when the figures increased to $4 million for Cypress Park and over $20 million for SARA Park it became a different ballgame, and added that the City borrowed $12 million and paid it back to shore-up the City’s Public Safety Retirement System (PSPRS) plan. Mayor Nexsen said SARA Park has not disappeared and he would like to see that it gets Lake Havasu City Page 12 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 built; however, that will be up to future city councils. Councilmember Lin said her issue is regarding the transparency on some of the projects, to which Mayor Nexsen said it has been very transparent. Mayor Nexsen asked if any of the other Councilmembers were surprised by any of the facts that he read. There were no comments. Vice Mayor Sheehy said the final budget has the commitment that the Council gave the City Manager for the direction for SARA Park. He explained that the Council wanted to see what the use was at Cypress Park to determine what the additional needs would be. He said the City would still have money that is funded in CIP for future budget years. Vice Mayor Sheehy said the Council has had those conversations multiple times throughout the budget process. He said the Council appreciates the work of all the City Boards and Commissions, but their work is an extension of the Council. He said he did not believe the Board was promised anything that the Council was not promised. Councilmember Lin said it was quite a different story at the Board meeting yesterday. She said she posed the question to the City Manager on whether the city will get the sports fields if Prop 409 passes, and stated that his response to this question was no. Mr. Knudson said there were some good discussions at the Board meeting yesterday in regards to Prop 409, SARA Park, and some of the other park improvements that were planned in the CIP for next year and the next few years. He said currently the City has $2.75 million identified in the CIP for construction of a ballfield at SARA Park. He said as Vice Mayor Sheehy alluded to, usage at Cypress Park will give the City a better understanding of where we want to be with soccer fields over the next 12 months and what the council woudl like to see in terms of projects. Mr. Knudson said currently the City does not have the available resources to pay for SARA Park. He said the design that has been identified would have to be a reduction in projects or a bonding effort would be needed to fund that facility. Mayor Nexsen asked if that means we are not building it, to which Mr. Knudson said the council will direct staff next year during the budget process. Mayor Nexsen suggested that in the future if the council wants to bond for building the park or decides that other projects have a higher priority, then they do it. He said he personally thinks SARA Park is important and has been on his bucket list since the needs assessment came out. He said years ago he was the one pushing for the skate park to show his support for children that did alternative sports. Mayor Nexsen said the idea that he has no interest in making sure the kids get their parks is misguided. Lake Havasu City Page 13 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Mayor Nexsen suggested that Councilmember Lin continue to push SARA Park as a high priority, work with the council at the time to do that, make sure that the Board knows what it takes to get that accomplished, and keep the Board informed. Councilmember Lin stated that she is an advocate for the sports complex and the fields but it is not her first priority. She said the City has a lot of other priorities that need to be addressed in the community with infrastructure, City employees, and compaction issues. Councilmember Lin stated that she would like to clear her name where at the last budget meeting a comment was made that she wanted to take away the parks. She said she does not want to take away the parks but she thinks there are more important things that need to be taken care of first before the parks. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to adopt Resolution No. 18-3237 adopting the Fiscal Year 2018-19 Budget in the amount of $144,585, 603, seconded by Councilmember McCoy, and carried by the following vote: Aye: 5 - Mayor Nexsen, Councilmember Coke, Councilmember Lane, Councilmember McCoy and Vice Mayor Sheehy Nay: 2 - Councilmember Groat and Councilmember Lin ID 18-1700 Reconvene to Regular Meeting The regular meeting reconvened at 7:07 p.m. 8.7 ID 18-1678 Award Bid for State Route 95/Riviera Parkway Intersection Improvement Project to AJP Electric, Inc. (Chris Rosetti) Project Manager Chris Rosetti advised that the item before the Council is to award the bid for State Route (SR) 95/Riviera Parkway Intersection Improvement Project (ST2630). Mr. Rosetti outlined the following in his presentation: • Improvements include: o Construction of an additional right turn lane from the SR95 onto Riviera Parkway o New sidewalk, curbs, and pedestrian crossing o Drainage infrastructure o Traffic signs and signals • Construction of this intersection is crucial since it provides the only means of access to the Havasu Riviera Lake Havasu City Page 14 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 • Construction budget $450,000 – 100% Highway User Revenue Fund (HURF) • Engineer’s estimate $406,772.00 • Low bid $559,326.60 – AJP Electric, Inc. o $109,326.60 shortfall will be paid with additional HURF funds o 50% of the total amount will be repaid to the City through the Development Agreement over the next 20 years • Schedule – 150 calendar days • Anticipated Completion – December 2018 Mr. Rosetti displayed aerial photos of the intersection location. Mayor Nexsen said for clarification 20 years is the maximum number of years the developer has to repay the City and it could be repaid earlier, to which City Attorney Kelly Garry stated that was correct. Mayor Nexsen asked about the overage, to which Mr. Rosetti explained that the increase is mainly due to a robust economy right now and becuase there are a limited number of specialty contractors that can do this work. Councilmember Groat asked if the Development Agreement has any provisions that would change the 50 percent, to which Ms. Garry said because the City did not have a final price when the Development Agreement was negotiated it is for 50 percent of the improvement cost for the traffic signal. She said they are aware that the estimate came in higher and have agreed to pay 50 percent of that cost. Mayor Nexsen added that the City negotiated with Arizona State Parks to put in the basic road and infrastructure and the developer is 100 percent responsible for any upgrade costs. Councilmember Lane added that this will be a public road that will go from SR95 to the new marina. Vice Mayor Sheehy said we are obligated to this contractually as it is part of a public-public-private partnership, and stated that it is important for the Council to move forward to get these projects completed. Mayor Nexsen opened the public hearing. Mr. Zieff addressed the Council and asked if there is a default on the payback program if there is a bankruptcy, to which Mayor Nexsen said the City is fully collateralized by property. There being no further comments, Mayor Nexsen closed the public hearing. Lake Havasu City Page 15 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Councilmember Groat moved to award the Base Bid State Route 95/Riviera Parkway Intersection Improvement, Project No. ST2630, to AJP Electric, Inc., seconded by Councilmember Lane, 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 8.8 ID 18-1682 Approve Sole Source Purchases of Wastewater Treatment Plant Parts from Schreiber, LLC (W. Mark Clark) Operations Manager Mark Clark advised that the item before the Council is for the purchase of sole source parts from Schreiber, LLC. He said both treatment plants are Schreiber process plants and the equipment parts are proprietary. Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to approve the Sole Source purchases for wastewater Treatment Plant parts from Schreiber, LLC, 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 8.9 ID 18-1683 Approve Bid Renewal and Sole Source Purchases for Odor Control Mitigation Chemicals for Wastewater’s Odor Control Program with Evoqua Water Technologies, LLC (W. Mark Clark) Mr. Clark advised that the City orders odor control chemicals from Evoqua Water Technologies, LLC, and has been purchasing Bioxide from them for over 25 years. He said the Wastewater Division has spent years fine tuning the chemicals for odor control, and added that this year they did a study that shows that they can switch to a new chemical (Alkagen) at a reduced rate. Mayor Nexsen asked why they did not use Alkagen at the Bombay Treatment Plant, to which Mr. Clark said currently they have only used it in one test case. Vice Mayor Sheehy asked if any of the equipment needed to be changed, to which Mr. Clark said they were testing the equipment and the chemical change and added that the manufacturer is providing the equipment for free if the City purchases the chemical from them. Lake Havasu City Page 16 Printed on 7/11/2018 City Council Minutes - Final June 26, 2018 Mayor Nexsen opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Sheehy moved to approve the bid renewal and sole source purchases for Odor Control Mitigation Chemicals for Wastewater’s Odor Control Program with Evoqua Water Technologies, LLC., 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 9. CURRENT EVENTS Councilmember McCoy reported that the Lake Havasu City Convention and Visitors Bureau has released their new visitor guide. She also reported that the Western Arizona Council of Government (WACOG) has a new pamphlet available with information and tips for caregivers. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, July 10, 2018 @ 6:00 p.m. – Regular Meeting Tuesday, July 24, 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 Coke and seconded, the meeting adjourned at 7:22 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 26th day of June, 2018. 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 17 Printed on 7/11/2018