City Council

Mayor Cal Sheehy Lake Havasu City Councilmember Jeni Coke Police Facility Councilmember Jim Dolan 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, December 11, 2018 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Suzanne G. Waldron, Mount Olive Lutheran Church Suzanne G. Waldron with Mount Olive Lutheran Church gave the invocation. 3. PLEDGE OF ALLEGIANCE Mayor Sheehy introduced Mr. Jeffrey Norton from the Builder’s Club at Telesis Preparatory Academy who led in the Pledge of Allegiance. Mr. Norton said the Builder’s Club serves the community and helps create leadership skills in students. Mayor Sheehy stated that different clubs and associations in the community will be invited to lead in the Pledge of Allegiance for City Council meetings throughout the year. 4. ROLL CALL Present: 6- Mayor Cal Sheehy, Councilmember Gordon Groat, Councilmember David Lane, Councilmember Michele Lin, Councilmember Donna McCoy and Councilmember Jim Dolan Absent: 1- Councilmember Jeni Coke 5. CALL TO THE PUBLIC There were no requests to address the Council. 6. SELECTION OF VICE MAYOR Councilmember McCoy nominated Councilmember Lane for the position of Vice Mayor for 2019. Councilmember Lane accepted the nomination. There were no other nominations for Vice Mayor. Councilmember McCoy moved to nominate Councilmember Lane for the position of Vice Mayor for 2019, seconded by Councilmember Dolan, and carried by the Lake Havasu City Page 1 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 following vote: Aye: 6 - Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy, Mayor Sheehy and Councilmember Dolan Absent: 1 - Councilmember Coke 7. CONSENT AGENDA 7.1 ID 18-1862 Approve the November 27, 2018, City Council Regular Meeting Minutes (Kelly Williams) 7.2 ID 18-1849 Adopt Resolution No. 18-3271 Approving the Submission of a Grant Application with the Arizona Governor’s Office of Highway Safety for DUI Enforcement Overtime (Dan Doyle) 7.3 ID 18-1850 Adopt Resolution No. 18-3272 Approving the Submission of a Grant Application to the Arizona Department of Homeland Security (AZDOHS) for SWAT Team Capability Enhancement (Dan Doyle) 7.4 ID 18-1852 Adopt Resolution No. 18-3273 Approving a Payroll Deduction Agreement with Lake Havasu Unified School District No. 1 to Allow Participation by City Employees in the Extracurricular Tax Credit Program through Payroll Deductions for Tax Year 2019 (Jill Olsen) 7.5 ID 18-1858 Approve the Wastewater Treatment Agreement with Orion Venture Capital, LLC, to Provide Wastewater Service to the London Bridge RV Resort (Jeremy Abbott) 7.6 ID 18-1861 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, January 8, 2019 (Kelly Williams) Councilmember Lane moved to approve the Consent Agenda as presented, seconded by Councilmember McCoy, and carried by the following vote: Aye: 6 - Mayor Sheehy, Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy and Councilmember Dolan Absent: 1 - Councilmember Coke 8. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 8.1 ID 18-1848 Fiscal Year 2018-19 1st Quarter Contracted Service Agency Reports (Dan Doyle) Lake Havasu City Page 2 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 Police Chief Dan Doyle stated that the Police Department manages contracts with HAVEN Family Resource Center and Western Arizona Humane Society, and reported on the 1st Quarter Reports. 8.2 ID 18-1846 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. 8.3 ID 18-1860 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • The Lake Havasu City Police Explorers were presented with a donation from the London Bridge Yacht Club. • The Lake Havasu City Havasu Mobility Department has resumed their normal schedule due to an increase of volunteers. • The Household Hazardous Waste Day was a success with receiving multiple pounds of Hazardous Waste and all items are to be recycled. • Upcoming Events: o December 14, 2018 – Annual Community Dinner at Lake Havasu Aquatic Center at 4:00 p.m. and 6:00 p.m. o December 31, 2018 – New Year’s Eve under the London Bridge at the Stage at 6:00 p.m. o December 31, 2018 – Annual Camaros on the London Bridge at 6:00 p.m. 9. PUBLIC HEARINGS 9.1 ID 18-1867 Adopt Ordinance No. 18-1210 Amending Lake Havasu City Code Chapter 2.70, Capital and Equipment Planning; Chapter 8.24, Sale of Certain Public Property; and Title 14, Zoning, Regarding the Capital Improvements Program (Jill Olsen) Administrative Services Director Jill Olsen advised that the item before the Council is the adoption of the ordinance that was introduced at the November 27, 2018, city council meeting. Ms. Olsen explained that the ordinance is comprised of housekeeping items to the City Code including correcting titles and department names, and the change of CIP to the Capital Improvement Plan. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Lane moved to adopt Ordinance No. 18-1210 amending the Lake Havasu City Code Chapter 2.70, Capital and Equipment Planning; Chapter 8.24, Lake Havasu City Page 3 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 Sale of Certain Public Property; and Title 14, Zoning, regarding the Capital Improvements Program, seconded by Councilmember Dolan, and carried by the following vote: Aye: 6 - Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy, Mayor Sheehy and Councilmember Dolan Absent: 1 - Councilmember Coke 9.2 ID 18-1813 Adopt Ordinance No. 18-1209 Amending the Zoning Classification and District Boundary for APN 107-78-004, 145 Park Avenue, from C-1 (Limited Commercial District) to C-2/PD (General Commercial Planned Development District) to Allow a Carwash and a Height Exception from the Maximum Building Height of 25 Feet for an Architectural Element up to a Height of 34 Feet (Stuart Schmeling) Senior Planner Stuart Schmeling advised that the property is located at 145 Park Avenue, just south of Highway 95 in the area of the Aquatic Center and Rotary Park. He said the property was part of an original McCulloch Corporation (MCO) Planned Development (PD) from 1993. Mr. Schmeling provided a site plan of the original PD and stated that across the street is an old water tank site that is currently being used as a City maintenance yard and to the south of the site is an electrical substation. Mr. Schmeling identified the zoning in the immediate area as P-1, I-B, C-1, MF, MU-N, and RM and noted the corresponding maximum height allowances under each. He said the height allowance under the C-1 and C-2 Districts is 25-feet and said one of the reasons the applicant is requesting the PD is because it is the only way to request a height exception. He added that typical exceptions requested through the PD process include things like height, parking standards, and landscaping depending on the location. Mr. Schmeling said one of the benefits of the PD is that the Council has the ability to view and approve the site plan. Mr. Schmeling reviewed the site plan and said the applicant is requesting a height exception of 34 feet for an 18 by 18-foot architectural element, and noted that the rest of the building meets the C-2 height standards of 25-feet. Mr. Schmeling said the setbacks from the property line from Highway 95 is 85 feet, from the adjacent property to the north is 47 feet, from the front of Park Avenue is 138 feet, from the wall of the substation to the south is 95 feet, and noted that the closest setback is the tunnel structure which is 13 feet. Councilmember Lane asked if the property was rezoned in July 2017 from C-1/PD to C-1, to which Mr. Schmeling replied yes. He explained that this was the first of all the parcels to remove from the PD and added that once the applicant moved forward to remove from the PD, the other parcels came forward in one application in July 2017; therefore, the original PD ceases to exist. Councilmember Lane asked if C-2 has heavier uses than C-1, to which Mr. Schmeling replied yes and explained that the C-1 District Lake Havasu City Page 4 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 contains 21 permittable uses, including retail, office, and restaurant, and the C-2 District allows 37 permittable uses, which contain the same 21 as found in the C-1 but also 16 additional uses. He said the uses under C-2 are typically heavier including storage units, and display, sale, and maintenance of vehicles of any type including watercraft, cars, and recreational vehicles. Councilmember Lin asked if there would be requirements for landscaping, to which Mr. Schmeling said the City Code contains the requirements for landscaping and noted that C-1 and C-2 are not held to different standards in regards to landscaping; however, the difference is the percentage of landscaping that is required. Councilmember Lin said it was her understanding that the applicant would be doing more landscaping that what is required in the City Code, to which Mr. Schmeling said the request was submitted as part of the PD and staff has not performed the design review to determine whether it meets the design standards. Councilmember Dolan said the applicant is requesting to rezone the property to C-2/PD and said it is his understanding that the approval of the PD is that the Council would be approving this specific site plan and if the applicant decided to change the use they would not be able to, to which Mr. Schmeling replied that was correct. He added that one of the reasons that an applicant goes through a PD application is to give the Council a level of comfort as to what can be developed. He said the applicant is showing the Council what they are planning to build which still has to go through staff design review and permits; however, if anything changes from that, it would require the Council’s approval. Councilmember Dolan said it was his understanding that the applicant had two options, to submit a request for C-2/PD and submit the plans, or request a rezone to M-U. Mr. Schmeling stated that the City does not want to suggest that there are just two options as there are a range of options. He said the General Plan has some statements that relate to the future land use of the area. He explained that the land use designated for the area is resort related, which describes the primary and secondary suggested uses for the resort-related area. He said there are several zoning districts that could accommodate that specifically and C-2 is probably not the best zoning district for that; but, in their specific case for the use that they are proposing, C-2 is probably the best for them. Mr. Schmeling said there are other zoning districts that implement the General Plan, for example, M-U meets the definition and fit; however, the applicant chose not to go with M-U because they do not intend to use the property for residential purposes and said in his opinion that is why the applicant chose to go with C-2 versus other zoning districts. Mr. Scott Howry, applicant, addressed the Council and stated that they own the property located at 145 Park Avenue. He said they purchased the property after it had been on and off the market for 10 years. He said it is currently zoned commercial and has two large public utility easements surrounding the property. He said there is very limited types of Lake Havasu City Page 5 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 uses that can make use of this property and they were able to put together a site plan that did not obstruct any of the easements but still meets all of the elements that were needed. He said the area is a perfect location for an express car wash in Lake Havasu City as there are no neighbors, it is situated next to a highway which is necessary for an express car wash, it is near a signalized intersection which is a huge benefit, and is near the center of town. Mr. Howry said they are very good at selecting site locations in other cities and have 15 open car washes and five car washes in the process. He said their open car washes are located in all types of areas and they have not had any complaints from neighbors. Mr. Howry added that the car wash will create 15 to 20 full time jobs and explained the three main environmental advantages of their express car wash which included: 1) reduction of storm water pollution, 2) reduction of City wide water usage, and 3) powered by the sun. He explained that they use less than 20 gallons of water per car and are a recognized Certified Water Saver in the United States. He noted that there are no other car washes in Lake Havasu City that have this certification. Mr. Howry added that City staff supports the recommendation for the zoning change. He said there was a question about the C-1 versus C-2 zoning and said there are some uses in C-1 that are very similar to C-2, such as gas stations, convenience stores, liquor stores and restaurants. He said their use is not going to be any more burdensome than one of those uses, and the fact that there is a PD allows the Council to review the site plan and design. He said that is the reason why City staff is recommending approval because they have done everything City staff has asked as far as the site plan for the PD. He said this project is a large investment, including the land purchase they will be spending $5 million to build the facility. He said it will be a nice structure along the highway and will sit 8 feet below grade off Highway 95 with nothing else over 22 feet, and added that views will not be obstructed towards the lake. Councilmember Lin asked Mr. Howry if their other car washes have been successful, to which Mr. Howry replied yes. Mayor Sheehy asked about the noise impact of the dryers, to which Mr. Howry explained that they use stealth blowers that have silencers on them and cannot be heard from 60 feet away. He said the tunnel will be facing towards the highway so any noise will be emitted towards the highway away from any future neighbors. Mayor Sheehy asked about the hours of operation, to which Mr. Howry replied that the hours of operation will be 7:00 a.m. to 9:00 p.m. in the summer and typically 7:00 a.m. to 8:00 p.m. in the winter. He said they will have a cashier, two preppers, and someone for maintenance and customer service issues. He added that they will employ 15 to 20 positions with approximately four employees onsite at any given time. Councilmember McCoy commented on the architectural element and solar, to which Mr. Howry replied that the architectural structure adds to the features of the building so that it Lake Havasu City Page 6 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 does look like a flat structure. Mr. Howry stated that they are located right next to offices, retail, hotel, and mixed-use areas in many other cities and have not had any problems with their neighbors. Councilmember McCoy said that the city has six car washes and there is always a concern for not putting others out of business, to which Mr. Howry replied that he is not aware of his business ever putting another car wash out of business. Councilmember Lane asked how many vehicles they anticipate per hour or per day, to which Mr. Howry replied that the numbers can fluctuate from five to ten cars an hour, to 50 to 60 cars an hour. He said a breakeven point for them would be 250 cars per day. Councilmember Dolan asked if the location would have a retail component within the car wash, to which Mr. Howry said they typically have a vending machine but no store. Councilmember McCoy asked if there would be a repair and maintenance component, to which Mr. Howry explained that there would be a mechanic onsite for repair and preventative maintenance on the equipment. Councilmember Groat asked how they compare to other car washes that do not leverage environmentally sound techniques, to which Mr. Howry replied that other car washes average 40 to 80 gallons of water depending on the location. He added that anything over 40 gallons is not considered a Certified Water Saver. Councilmember Groat asked how the applicant chose Lake Havasu City and how it compares to other cities, to which Mr. Howry said for an express car wash they look for populations with at least 50,000 people and added that they have been looking for a location in Lake Havasu City for seven years. He said the size of location has to be over 1.25 acres and has to have traffic, good visibility, and access. He said this location has all of those elements. Councilmember Groat asked about the traffic counts in the area, to which Mr. Howry said traffic counts are a factor in location; however, more than anything it is rooftops within a certain amount of miles because those are the people that are going to go to a car wash within a certain distance of their house. He said traffic counts are relevant; however, on a highway you have to discount commuter traffic, and said a traffic count of 20,000 to 30,000 per day with visibility off the highway is enough for an express car wash to be successful. Mayor Sheehy stated that this item is coming with a recommendation of approval from City staff and a recommendation of denial from the Planning and Zoning Commission Lake Havasu City Page 7 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 (Commission). He asked Mr. Schmeling for a brief explanation of the two recommendations. Mr. Schmeling stated that the Commission recommended denial, 5 to 0, and as part of the staff report he recommended that the City Council review the minutes of the Commission meeting. Mr. Schmeling said the Commission Members all either mentioned or gave a nonverbal suggestion that height was not an issue; therefore, the only other issue would be the use of the property. He added that there was no particular statement made with regard to concern over impacts or possible impacts. He said the only statement made was that it was a desirable location because of its proximity to the lake. Mayor Sheehy opened the pubic hearing. Ms. Vicky Runyon addressed the Council and said she has lived in Lake Havasu City for 30 years and owns the property next door. She said she is in the planning stages for building a commercial building that will house Keller Williams and her extended companies as well as other companies that are geared towards professional services. She said when she purchased her property it was rezoned for C-1, the same as this property, and her concern is that over the years, even though this has taken a long time to develop, the city is finally getting to a place where the interest to do some amazing things in that area like condominium projects, commercial buildings, and retail is really suited for C-1. Ms. Runyon said if you look at the car washes in town they are sitting on C-2 properties on outlying areas. She said even if she did not own the property next door she is passionate about Lake Havasu City and the choices that the City makes right now are long term choices. She said this is not a good use for the property and asked the City Council to consider whether this is what the city should use prime property for. Councilmember McCoy said there is another car wash on Mesquite Avenue that operates with businesses next door and asked Ms. Runyon if she believes that hurts the area, to which Ms. Runyon replied that it is a different location and this location is prime property. Ms. Runyon said she does not believe it is what we really want there or what our intended use is of the property. She said she also believes that it is not a good location for the city. She said it is a beautiful car wash; however, when the city was developed they were developed on different areas and C-2 was the zoning for a reason. Councilmember Lin said as the city grows she believes it is going to be an injustice for the City Council to tell a company no that wants to invest money, jobs and revenue in the community. She said this property has sat vacant for a very long time and if there is someone who wants to invest in the community she believes the City Council should allow them to do it. Lake Havasu City Page 8 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 Mr. Marty Koeth addressed the Council and spoke in favor of the car wash. He said he is a lifelong resident with family that goes back four generations in Lake Havasu City. Mr. Koeth said he has been to Surf Thru car washes in other cities and knows firsthand that they have been a great thing to come into a community. He said they are aesthetically pleasing buildings and immaculate. He added that the business is very professional, will bring a tax base and jobs to the community, and care about the cities they are located in. Mr. Jeff Dadam addressed the Council and said he is the owner of Car Toyz Car Wash in town. He said Lake Havasu City does need an express car wash which is why he started looking a year and a half ago to build an express exterior car wash in Lake Havasu City. He said when looking for a location he looked at this property and decided that it is not the right location for a car wash. Mr. Dadam added that he owns seven car washes, with Car Toyz being the eighth, and has two car washes in the process of being built. He said when he looks at buildings in smaller to mid-size cities that are growing he feels there is a responsibility to that community to put the car wash in the right place. Mr. Dadam said his new location, which is being proposed at the corner of Arapaho Drive and Maricopa Avenue, will be an express car wash with retail for audio and stereo installation and detailing of boats. Mr. Dadam said he is proposing to do the same thing as Surf Thru but create 25 to 35 jobs and bring value to Lake Havasu City, and added that it was easy for him to find the right property which he believes is in a much better location. Mr. Brian Springberg addressed the Council and said he is a co-owner of one of the parcels a few lots down from the proposed property. He said he shares some similar and differing viewpoints of those shared. He said he feels that the City Council should take the Commission’s opinion seriously and believes that the 5 to 0 vote was done objectively, not oddly, and that they had their own objective reasons to make that recommendation to Council for denial. Mr. Springberg said from a selfish standpoint he would be in favor of this project as it will positively affect the value of his property personally; however, from an economic development point of view, the city is in the driver’s seat right now as the previous councils and mayor did a wonderful job of putting the city in a sound financial position and making decisions that could negatively affect what the city is going to be in ten to 15 years for the sake of spreading out what is already economically happening. He said in ten years when the population looks back at this decision, once this is a car wash it will always be a car wash. Mr. Springberg said when a hotel is developed across the street and surrounding property begins to develop to not have this space focused on the quality of life for residents and a quality experience for tourists when it is one of the last pristine commercial areas left in Lake Havasu City. He said the fact that it has not been developed is not an argument to develop it into something that down the road the city wished would not have been done even though it may have made sense for a number of years. He said some of the other thoughts shared were relative to the zoning and said he understands that the City Council and Commission are not in charge of picking what kinds of business Lake Havasu City Page 9 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 come to Lake Havasu City; however, the zoning choice of the Council and Commission does affect the residents of this community, and added that he believes that the City Council, more than anything else, has the opportunity to affect the vision of the city. Mr. Dane Hatch addressed the City Council and said he has been a resident for 26 years and spoke in favor of the express car wash. He said for someone to state that they do not want a business next to them because it is not the best use of the property is very limiting of businesses coming into this community. He said he has seen businesses come and go and with Surf Thru having 15 car washes and five coming it shows that they are a growing business and will be able to make this work. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Dolan questioned how the City Code addresses requests for zoning changes, to which City Attorney Kelly Garry explained that anyone has a right to request a zoning change. She said it goes through staff review to determine whether it is in compliance with the City Code or what restrictions may apply. She said staff will look at the underlying General Plan, and if the zoning change is in compliance with the General Plan generally it will move forward at least to the next step. She said in determining if it is appropriate, the Zoning Administrator will review it and apply all of the requirements of the City Code which is contained in the staff report. Councilmember Dolan said for clarification the fact that the application has gone through City staff means that it is in compliance with the City Code and General Plan and is not something outside of that, to which Ms. Garry replied yes. She said had the application not been in compliance, it would have been reflected in the staff report and staff would be recommending denial. Mr. Schmeling clarified that a rezone is a private property issue and only the property owner or a representative of that owner has the right to apply for a rezoning. Mayor Sheehy said as the city grows and availability of land is limited, all of the infill is going to create conversations that are much more heightened about rezoning because the Council really does need to look and conform to the General Plan which was approved by the voters in 2016. He said the General Plan lists what the expected uses of these lands are going to be, and the Council will have to have a continued focus on this. He added that there has been a lot of discussion about the actual business for this area and the type of use because of the PD; however, the Council needs to focus on the land use or where it is going to go and not get into the business itself. Mayor Sheehy said he struggles with the fact that this was rezoned to C-1just 18 months ago in concert with the surrounding property owners. He said if he was one of the property owners he would think that all C-1 Lake Havasu City Page 10 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 uses would be in that area and would be making plans, uses, and changes for those types of things. Mayor Sheehy said this is one last stretch of land that the Council has the opportunity to look at from a Council perspective of zoning. He added that there has also been discussion regarding C-1 uses and is not really specific on what the Council is talking about here with a C-2, as a C-1 is what the plan wants and what everyone discussed so those are uses that are able for that area and specific; however, moving to C-2/PD is very specific to a particular use. He said the Council really needs to look at this in a land use planning perspective. Councilmember Lane said the City Council rezoned this property on July 11, 2017 so that all properties were C-1. He said the deciding factor for him is that he does not think it is the appropriate use for the land and added that the Commission Members are the experts in planning and zoning and looked at this request and voted against it 5 to 0. He added that the City Council just rezoned this property to C-1 and he would like to see C-1 properties developed on the property. Councilmember Lane moved to deny the request to amend the zoning classification and boundary district for APN 107-78-004, 145 Park Avenue, from C-1 (Limited Commercial District) to C-2/PD (General Commercial Planned Development District), seconded by Councilmember McCoy. Councilmember Groat stated that City staff has recommended that the rezone be approved. He said the commercial uses down there are free to put anything they want as the zoning already exists. He asked if the applicant could make changes to the car wash to allow them to fit within the existing zoning, to which Mr. Schmeling replied no. He said a car wash is not a permitted use in a C-1 District; therefore, it would have to be zoned to something else to be allowed in that location. Councilmember Groat said the property has been vacant for a very long time and this business is willing to invest and create jobs in the community. He said he has an issue with people saying “this is the last property of this type” in that it has a tendency to chase investment away rather than bring it to the community. He said the city is surrounded by a lot of different areas in this community that can have beautiful developments if we separate the individual needs of individual investors located on proximal pieces of real estate from the objective duty that the Council has to move the community forward by increasing economic development. He said the City Council needs to look at what is in the best interest for the economic development of Lake Havasu City. He said if the City Council denies this request it has the impact of limiting the desire of external investors from coming to a location like Lake Havasu City. Mayor Sheehy clarified that the City Council needs to focus on the zoning and not the Lake Havasu City Page 11 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 land use and economic development piece which is not the motion on the table. Mayor Sheehy called for a vote on the motion. Motion carried by the following vote: Aye: 4 - Mayor Sheehy, Councilmember Lane, Councilmember McCoy and Councilmember Dolan Nay: 2 - Councilmember Groat and Councilmember Lin Absent: 1 - Councilmember Coke 9.3 ID 18-1859 Approve Change Order No. 2 to Construction Contract for the Wash Stabilization Improvements Bid Package #1 with FNF Construction, Inc. (Dustin Salisbury) Project Manager Dustin Salisbury stated that the item before the Council is to approve Change Order No. 2 to the Wash Stabilization Bid Package No. 1 (Project No. DR1010) with FNF Construction, Inc. Mr. Salisbury noted that the project was constructed between April 2017 through October 2017 and went passed the original schedule of 90 days. He said in April 2018, FNF Construction, Inc., approached the City with a request for delayed compensation on the project after they compiled all the facts. He said they initially requested $433,000; however, after negotiations, they arrived at an agreeable sum for actual damages in the amount of $100,000. Mr. Salisbury said the first delay was due to an owl relocation when the City discovered an owl burrowing during the project. He explained that a survey was done prior to the project that indicated that no owls were found at the time of the survey; however, between the time of the survey and the project the owls moved in, and added that federal and state regulations require work to stop within 100 feet of any owl that is found. Mr. Salisbury noted that the owl relocation accounted for 44 percent of the delay to the project. Mr. Salisbury said the second delay was due to a utility conflict in the Broadwater Drain. He provided pictures that showed a utility pole in the middle of the wash that the City was originally going to work around until Unisource was able to relocate it. He added that during the project it was discovered that the pole was not buried deep enough to accommodate the grading that the City needed to do to lower the channel bottom which would have left the pole embedded only two feet within the soil and posed a risk to the utilities attached to the pole; one being the City’s fiber optic line. Mr. Salisbury stated that there was a lot of work that was impacted and delayed due to these two relocations. In response to Councilmember Groat’s question, Mr. Salisbury replied that the species of owls that were discovered was the Western Burrowing Owl. Lake Havasu City Page 12 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 Councilmember Groat asked if Mr. Salisbury could expand on the nature of the utility relocation, specifically the City’s broadband or fiber, to which Mr. Salisbury explained that there were three separate utilities attached to the pole, the lowest three being fiber optic lines belonging to the City and Suddenlink, and the upper lines being power lines belonging to Unisource. Councilmember Groat questioned if the franchise agreement with Unisource allows the City to have fiber optics on their utility pole, to which Mr. Knudson stated that fiber optics on these utilities allows for communication between the City buildings. There was discussion related to the franchise agreement. Councilmember Groat asked how the City is able to use fiber optics on their pole, to which Mr. Knudson stated the City went through the necessary request process which was subsequently approved. Assistant City Engineer Jeremy Abbott explained that it is not specifically included in the City’s franchise agreement with Unisource. He said it is a Unisource owned pole; however, the City has an agreement with Unisource and pays a yearly service to have fiber on their utility poles. Councilmember Dolan asked if there are concerns regarding the depth of other utility poles, to which Mr. Salisbury explained that the yellow tags on the poles indicate the depth that the pole should be buried. He said the depth was sufficient at the time it was installed; however, during construction the City lowered the channel bottom which did not leave enough grab for the pole. Mr. Abbott added that Unisource was involved in the design review. He said the City was aware of the conflict and Unisource made the decision to make the relocation. He said there was going to be no impact to their infrastructure with the City’s project so they were going to relocate the pole after the project was completed to not impede the schedule of the contractor. Mr. Abbot said once the project was underway, Unisource was not aware of their infrastructure and the depth of their pole and the City had to react. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to approve Change Order No.2 to the Construction Contract for the Wash Stabilization Improvements Bid Package #1 with FNF Construction, Inc., seconded by Councilmember Dolan, carried by the following vote: Aye: 6 - Councilmember Groat, Councilmember Lane, Councilmember Lin, Councilmember McCoy, Mayor Sheehy and Councilmember Dolan Absent: 1 - Councilmember Coke 10. CURRENT EVENTS There were no council committee reports. Lake Havasu City Page 13 Printed on 1/11/2019 City Council Minutes - Final December 11, 2018 11. CALL TO THE PUBLIC There were no requests to address the Council. 12. FUTURE MEETINGS Tuesday, December 25, 2018 @ 6:00 p.m. – CANCELED Tuesday, January 8, 2019 @ 6:00 p.m. – Regular Meeting Tuesday, January 22, 2019 @ 6:00 p.m. – Regular Meeting Tuesday, January 24, 2019 @ 8:30 a.m. – City Council Planning Retreat (Islander Resort) 13. FUTURE AGENDA ITEMS There were no requests for future agenda items. 14. ADJOURN Upon motion by Councilmember Lane and seconded, the meeting adjourned at 7:55 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 11th day of December, 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 14 Printed on 1/11/2019