City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor David Lane Police Facility Councilmember Jeni Coke 2360 McCulloch Blvd North Councilmember Jim Dolan Lake Havasu City, Arizona Councilmember Gordon Groat 86403 Councilmember Michele Lin www.lhcaz.gov Councilmember Donna McCoy City Council Regular Meeting Minutes - Final Tuesday, June 25, 2019 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Andrew Cave, Lamb of God Lutheran Church Pastor Andrew Cave with Lamb of God Lutheran Church gave the invocation. 3. PLEDGE OF ALLEGIANCE: Lodge #2399 Elks & Elkettes Lodge #2399 Elks & Elkettes led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Cal Sheehy, Vice Mayor David Lane, Councilmember Jeni Coke, Councilmember Gordon Groat, Councilmember Michele Lin, Councilmember Donna McCoy and Councilmember Jim Dolan 5. CALL TO THE PUBLIC Ms. Lisa Krueger, President of the Lake Havasu Area Chamber of Commerce, addressed the Council and introduced new Chamber members. Mr. Thomas Pickard, resident, addressed the Council concerning the blind corner at Rainbow Avenue North and Beverly Glen Drive. Mr. Pickard said vehicles are driving at high speeds which is very dangerous for homeowners living in the area. He asked the Council to be proactive and install speed bumps to slow the traffic. 6. CONSENT AGENDA 6.1 ID 19-2069 Approve the May 16, 2019, City Council Budget Work Session Meeting Minutes, and June 11, 2019, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 19-2048 Approve Services Agreement with HAVEN Family Resource Center, Inc. for Victim Services for Fiscal Years 2019-20 / 2020-21 (Chief Doyle) 6.3 ID 19-2055 Adopt the Public Safety Personnel Retirement System (PSPRS) Pension Lake Havasu City Page 1 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Funding Policy to be effective July 1, 2019 (Jill Olsen) 6.4 ID 19-2051 Adopt Resolution No. 19-3320 Approving an Intergovernmental Agreement with the Arizona Department of Revenue Related to Uniform Administration of the City's Transaction Privilege Tax (Jill Olsen) 6.5 ID 19-2052 Adopt Resolution No. 19-3324 Approving and Authorizing the City Manager to Execute the 1Government Procurement Alliance Intergovernmental Membership Agreement (Lynette Singleton) 6.6 ID 19-2064 Adopt Resolution No. 19-3325 Accepting Dedication of a New 10-Foot by 365.63-Foot Public Utility Easement and a New 20-Foot by 30.79-Foot Public Utility Easement for Tract 127-B, Block 13, Lot 8 (Luke Morris) 6.7 ID 19-2063 Adopt Resolution No. 19-3326 Accepting Dedication of a New 45-Foot Wide Easement for Ingress/Egress, Common Parking, Public Utility and Drainage; a New 10-Foot Public Utility Easement; and a New 16-Foot Public Utility Easement on Tract 161, Block 2, Lot 22 (Luke Morris) 6.8 ID 19-2065 Adopt Resolution No. 19-3327 Abandoning the Southerly 7 Feet and the Northerly 3 Feet of the 20-Foot Wide Drainage Easement Located on Lot 12AA, Parcel G, and Lot 13A, Mesquite Bay at Sailing Hawks, Resulting in a 10-Foot Wide Drainage Easement (Luke Morris) 6.9 ID 19-2067 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, July 9, 2019 (Kelly Williams) Councilmember Coke moved to approve the Consent Agenda as presented, seconded by Councilmember McCoy, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 7.1 ID 19-2049 Fiscal Year 2018-19 3rd Quarter Contracted Service Agency Reports (Chief Doyle) Mayor Sheehy noted that this item was for informational purposes only. 7.2 ID 19-2068 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) City Clerk Kelly Williams announced the current and upcoming vacancies on various Lake Lake Havasu City Page 2 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Havasu City Boards, Committees, and Commissions. 7.3 ID 19-2066 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Havasu Mobility partnered with the National Kidney Foundation of Arizona and Fresenius Medical Care to provide transportation to residents. • The Lake Havasu City Fire Department recognized the Community Emergency Response Team (CERT) for installing the 500th residential Knox Box. • The Parks and Recreation Department hosted the Journey of Hope cyclists as they continued their journey onto Washington D.C. • Mayor Sheehy proclaimed the month of July as Distracted Driving Awareness Month. • City offices will be closed on Thursday, July 4, 2019, in observance of the Independence Day holiday. 8. PUBLIC HEARINGS 8.1 ID 19-1982 Adopt Resolution No. 19-3316 Appointing Regular Members to the Lake Havasu City Parks and Recreation Advisory Board (Kelly Williams) Ms. Williams advised that the City received one application requesting consideration to fill an upcoming vacancy of a regular member position on the Parks and Recreation Advisory Board with a term ending June 30, 2022. Mr. Jason Keough, applicant, addressed the Council and said he is seeking reappointment to continue serving on the board to be a liaison between the Parks and Recreation Department and the community. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to adopt Resolution No. 19-3316 reappointing Jason Keough as a regular member to the Lake Havasu City Parks and Recreation Advisory Board with a term ending June 30, 2022, seconded by Councilmember Lin, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.2 ID 19-1983 Adopt Resolution No. 19-3317 Appointing Regular Members to the Lake Havasu City Planning and Zoning Commission (Kelly Williams) Ms. Williams advised that the City received four applications requesting consideration to fill the upcoming vacancies of three regular member positions on the Planning and Zoning Lake Havasu City Page 3 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Commission with terms ending June 30, 2022. Mr. Donald Bergen, applicant, addressed the Council and said after retiring he has volunteered in the community in various aspects and has served three terms on the Planning and Zoning Commission. He said during his last term, serving as an alternate member, he was seated at several meetings due to the absence of regular members and has also filled in as the chairman. Mr. Bergen said he has an extensive background in the City’s policies and procedures and as a board member bases his decisions on what is best for the residents of Lake Havasu City. Applicants Mr. Daniel McGowan, Mr. Kevin Murphy, and Mr. Chad Nelson were not in attendance. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Lane moved to adopt Resolution No. 19-3317 appointing Daniel McGowan, Donald Bergen, and Chad Nelson as regular members to the Lake Havasu City Planning and Zoning Commission with terms ending June 30, 2022, seconded by Councilmember Dolan, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin and Councilmember Dolan Nay: 1 - Councilmember McCoy 8.3 ID 19-2027 Series #12 Restaurant Liquor License, Golden Phoenix Chinese Restaurant, 1685 Mesquite Avenue, Suite #G/Dean (Kelly Williams) Ms. Williams advised that Cui Yan Liu Dean has applied for a Series #12 Restaurant Liquor License for Golden Phoenix Chinese Restaurant located at 1685 Mesquite Avenue, Suite #G. Ms. Williams noted that all posting requirements have been met, all fees have been paid, and no objections were received. She said the location is properly zoned for a Series #12 restaurant liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Coke moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #12 restaurant liquor license for Golden Phoenix Chinese Restaurant, 1685 Mesquite Avenue, Suite #G., seconded by Councilmember McCoy, and carried by the following vote: Lake Havasu City Page 4 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.4 ID 19-2028 Truth in Taxation Hearing and Public Hearing on the Proposed Fiscal Year 2019-20 Property Tax Levy (Jill Olsen) Administrative Services Director Jill Olsen advised that the item before Council is the Truth in Taxation and public hearing for the City’s property tax levy for Fiscal Year 2019-20. Ms. Olsen outlined the following in her presentation: Truth in Taxation City Property Tax • City tax rate is not changing for Fiscal Year (FY) 2019-20 • Property Taxes collected by the City help fund City services like police, fire, parks, and streets. • Only 7.8 cents of every dollar paid by Lake Havasu City property owners goes to the City. Ms. Olsen reviewed the levy rate in FY 2018-19 compared to the proposed levy rate for FY 2019-20: FY 2018-19 FY 2019-20 Levy Rate $0.6718 per $100 $0.6718 per $100 Assessed Value $693,932,809 $738,991,584 Levy Dollar Amount $4,661,841 $4,964,545 • The additional annual tax on a home with assessed value of $100,000 would be $3.14. Ms. Olsen noted that the levy rate for FY 2019-20 is remaining the same (flat) at $0.6718 per $100 in assessed valuation and explained that increases in assessed valuations generates an additional revenue source based on the increase in the values; therefore, the City will receive additional revenue in FY 2019-20 due to the assessed valuation increase and new construction. Ms. Olsen explained that for every $100,000 of assessed value would be an additional $3.14 per year tax increase. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Mayor Sheehy noted that there are various taxing jurisdictions on the property tax bill and Lake Havasu City Page 5 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Lake Havasu City is one of the lowest at 7.8 cents per $100. Councilmember Dolan moved to approve a motion to levy the proposed Fiscal Year 2019-20 Property Tax and to assess the levy at the July 9, 2019, City Council meeting, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.5 ID 19-2029 Adjourn to Special Meeting Upon motion by Councilmember Coke and seconded by Vice Mayor Lane, Mayor Sheehy adjourned to Special Meeting at 6:28 p.m. 8.6 ID 19-2030 Adopt Resolution No. 19-3319 Adopting the Fiscal Year 2019-20 Final Budget (Jill Olsen) Ms. Olsen advised that the item before Council is the adoption of the Fiscal Year 2019-20 final budget. Ms. Olsen outlined the following in her presentation: Final Budget Adoption Fiscal Year 2019-20 • The Tentative Budget was published in the newspaper on June 16 and June 23, as required by law • Council may change or reduce the amount of the final budget, but cannot increase the amount • No changes to the budget since Tentative Budget Adoption on June 11 • Balanced Budget with no additional debt Fiscal Year 2019-20 Revenues and Expenditures Revenues Expenses Total FY 2019-20 Final Budget $119,595,846 $148,611,388 • The City Council will meet on July 9, 2019, for the purpose of adopting the tax levy rates for City Property Tax and Special Districts. Proposed Rates included in the 2019-20 Final Budget Levy Rate Levy Amount City Property Tax $0.6718 per $100 Assessed Value $4,964,545 Irrigation and Drainage District $268.85 per Acre $5,684,564 Lake Havasu City Page 6 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Improvement District #2 $0.7370 per $100 Assessed Value $16,001 Improvement District #4 $0.5040 per $100 Assessed Value $59,375 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Mayor Sheehy highlighted that the final budget includes a balanced budget with no debt issued, property tax rates remaining the same, step increases for all eligible City employees, funding for the positional analysis study, and a fully funded Capital Improvement Plan (CIP) with an identifying funding source. Councilmember Groat moved to adopt Resolution No. 19-3319 adopting the Fiscal Year 2019-20 Budget in the amount of $148,611,388, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.7 ID 19-2031 Reconvene to Regular Meeting The Regular Meeting reconvened at 6:33 p.m. 8.8 ID 19-2062 Approve Solid Waste Facilities Operation Agreement with Allied Waste Transportation, Inc., for the Operation and Management of the Landfill (Jess Knudson) Mr. Knudson advised that this item is an agreement with Allied Waste Transportation (Allied Waste) the parent company of Republic Services that provides residential trash and recycling services for the community. Mr. Knudson said the City solicited proposals from the private sector through a Request for Proposal (RFP) and identified Republic Services as the best firm to negotiate a contract for the operation of the landfill. Mr. Knudson explained that the City owns the landfill but will partner with Republic Services to manage and administer the operations. He said the agreement is for the lifetime of the landfill and allows the City to identify fees for the residents and how the City wants the landfill to operate for the next 37 years (estimated lifespan). Mr. Knudson explained that when the landfill closes, Republic Services will be financially responsible for the closure and also for the post-closure activities which includes monitoring the landfill for 30 years after the closure. Mr. Knudson said as part of the agreement the City will receive 20 percent of the gross revenues collected at the landfill. He said the City also identified controlled increases for tipping fees that are tied to a Consumer Price Index for water, wastewater, and trash with a maximum increase of four percent per year to keep the cost of use of the landfill to a Lake Havasu City Page 7 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 minimum for the residents. He said the agreement includes a two-tier structure for fees, one for residents and one for non-residents, and added that the agreement also identifies the construction of a second scale house, as well as a process called a “tare card” where a vehicle can be weighed when entering the landfill and kept on file to speed up the weighing process. Mr. Knudson said this is an important contract for the City to be able to limit the amount of trash that comes into the landfill from outside the city to preserve the landfill for the residents. He added that the agreement also allows Republic Services to assess a fine for users of the landfill that are not using a tarp to secure their loads. Vice Mayor Lane asked about the increase in tipping fees, to which Mr. Matt Kross, Republic Services General Manager, explained that the tipping fees (or gate rate) will be increasing from $32.95 to $33.07 per ton (2,000 pounds). He said they also have a minimum tipping fee of $6.00. Mr. Kross explained that a “tare card” is used for commercial or residential vehicles that use the landfill regularly. He said these vehicles are weighted empty and given a card with a number that has their vehicle’s empty weight stored in their system saving time. Councilmember Groat asked about the fines for vehicles without a tarp, to which Mr. Kross said the agreement now allows Republic Services to set those fines. He explained that currently the fines are so low that there are vehicles continuously using the landfill without a tarp that would rather be fined because the cost and time of using a tarp is more expensive than the fine. He said this agreement gives Republic Services the ability to stop these vehicles from using the landfill. There was discussion regarding the trash and recycling bins. Mr. Kross said prior to the new bins an individual crew member was picking up over 30,000 pounds of trash per day, and said year-to-date they have had zero worker’s compensation injuries and their turnover rate is some of the lowest in the company. Mayor Sheehy said the residents have been doing a great job preserving the life of the landfill by recycling and noted that just a few years ago before the new bins, the life of the landfill was estimated to be nine years. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Lane moved to approve the Solid Waste Facilities Operation Agreement with Allied Waste Transportation, Inc., seconded by Councilmember McCoy, and carried by the following vote: Lake Havasu City Page 8 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.9 ID 19-2059 Adopt Resolution No. 19-3322 Approving Lake Havasu City Consolidated Court Lease Agreement with Mohave County (Mitchell Kalauli) City Magistrate Mitchell Kalauli addressed the Council and said this item is the approval of the lease agreement with Mohave County. Mayor Sheehy noted that this item and next item are companion items, and said the lease agreement needs to precede the deconsolidation of courts. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to adopt Resolution No. 19-3322 approving the Lease Agreement with Mohave County for the Municipal Court, and authorize the City Manager to execute the Agreement on behalf of the City, seconded by Councilmember Groat, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.10 ID 19-2054 Adopt Resolution No. 19-3321 Approving the Amendment and Modification to the Intergovernmental Agreement with Mohave County for the Consolidated Administration and Operation of Lower Courts (Mitchell Kalauli) Judge Kalauli advised that the item before the Council is a resolution to deconsolidate the courts effective August 31, 2019. Judge Kalauli noted that the municipal and justice courts would remain in the same building at this time; however, this gives the municipal court the opportunity, through change, to grow. Councilmember Dolan said this agreement is moving in the right direction for the future of the municipal court. Mayor Sheehy said the deconsolidation of the courts essentially means that the municipal court will remain in the same building but allows City staff, Judge Kalauli, and his team to plan for the future. Mayor Sheehy explained that as the community has grown so has the court caseload; therefore, space has become a concern since the building is shared between the municipal, justice, and superior courts. He said as a smaller community it made sense financially to the taxpayers to be consolidated; however, with growth it is no Lake Havasu City Page 9 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 longer beneficial to the taxpayers of Lake Havasu City. Councilmember Lin asked if the deconsolidation will create a smooth transition for the clients, to which Judge Kalauli replied that there will be some adjustment. He added that on most days the lobby is crowded and people have to wait, and added that as the city grows the court wants to move forward and keep up with the growth. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember McCoy moved to adopt Resolution No. 19-3321 approving the Amendment and Modification to the Intergovernmental Agreement with Mohave County for the Consolidated Administration and Operation of the Lower Courts, seconded by Councilmember Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.11 ID 19-2061 Approve a Five-Year Animal Care and Shelter Services Contract with the Western Arizona Humane Society (Chief Doyle) Police Chief Dan Doyle advised that the Lake Havasu City Police Department handles animal control services for the city and for several years now the City has contracted with the Western Arizona Humane Society (WAHS) for sheltering services. Chief Doyle said before the Council is a contract renewal for sheltering services with WAHS that includes some minor housekeeping changes and one major change in cost. He explained that the City for the past five years has paid $250,000 a year for sheltering services, and this year the City desired to lower that contract amount. He said the City and WAHS negotiated a 5-year contract of $225,000 per year for years one and two, and $200,000 per year for years three through five. Chief Doyle noted that the operation between animal control services and the shelter would remain the same. Councilmember Lin asked how many dogs are brought into the shelter per year, to which Chief Doyle said in Fiscal Year 2017-18 the Police Department delivered 392 animals to WAHS and had 208 public impounds. Chief Doyle said the cost breakdown for Fiscal Year 2017-18 equates to $637 per animal, and $416 for stray animals that are brought in by the public, which is also factored into the statistics. Councilmember Lin asked what percentage of those animals are returned to their owners, to which Chief Doyle said of the impounds that the Police Department brings in, an average of 65 to 66 percent are returned to their owner. He said in Fiscal Year 2017-18, of the 392 impounds that the Police Department brought in, 260 were returned to their owners and 132 were retained by WAHS, and of the 208 public impounds, 42 were returned to their owner, averaging a Lake Havasu City Page 10 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 20 percent return rate for public impounds. There was discussion on alternative options. Chief Doyle said one alternative option that the City considered was providing sheltering services in-house. He said there is a lot that goes into creating a shelter and said after factoring everything in, the City would not be able to provide sheltering services in-house for less than what was negotiated. Councilmember Lin asked if the City could utilize the sheltering services that will be managed by Mohave County, to which Chief Doyle said yes; however, there would be logistical issues with providing temporary kennels and transportation. He explained that before animals could be transported to Mohave County the City would have to hold them three to five days which would put additional liability on the City. Chief Doyle said there are several possibilities and alternatives, but each one comes with its own difficulties. Councilmember Dolan reviewed the sheltering services proposal process and said his understanding was that WAHS did not want to negotiate with the Police Chief or the City Manager which left the Council with questions. He added that the Council has also received a lot of comments and information from the community about the administration of WAHS. Chief Doyle noted that the City went out to bid twice to generate interest and competition and both times WAHS was the only bidder. Mayor Sheehy opened the public hearing. Ms. Frankie Lyons, Veterans United Arizona, addressed the Council and said they work closely with WAHS for the “Vets with Pets” Program. She said her concern with utilizing sheltering services in Kingman is that the shelter will become overcrowded and there will be more animals euthanized. She said the community has come together for the animals and whatever issue there is with the administration of WAHS is really not the business of the City Council. She said the Board is responsible for the operation and administration of WAHS. Mr. Stephen Jenkins, Administrative Manager of WAHS, addressed the Council and said he was before the Council representing WAHS, the board members, employees and volunteers, and Ms. Patti Gillmore, Executive Director of WAHS, who was unable to attend the meeting. He said WAHS is able to offer services at their new facility that are far superior to what they were offering just a few short months ago due to the fundraising efforts and incredible support of the community. He said the relationship between animal control services with the Police Department is their top priority and they look forward to their partnership with the City for the next five years. Lake Havasu City Page 11 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Vice Mayor Lane asked for the average number of days an animal is in the shelter before it is adopted, to which Mr. Jenkins said it is difficult to calculate an average number of days because it depends on the animal. He said some breeds are more desirable and are adopted two to three weeks after arriving, while others may be less desirable and can be with WAHS anywhere from six months to three years. Vice Mayor Lane asked if the 260 animals that were returned to their owner were returned within one to five days, to which Mr. Jenkins said WAHS takes ownership of an animal after the fifth day, so if an owner comes back and wants to readopt or pay the fees to the City they try to get the animal back with their owner. Vice Mayor Lane asked about the medical costs, to which Mr. Jenkins replied that the average medical cost per animal is $150. He said all animals are vaccinated upon intake which range from $30 to $45, with an additional $20 for a rabies vaccine unless they can prove the animal has had their rabies vaccine, and an additional $95 for spay or neuter if the animal has not been fixed. He noted that the costs increase if the animal has any other medical needs. Councilmember Lin asked about the adoption fees, to which Mr. Jenkins said the standard adoption fees are $155 for a puppy and $135 for an adult dog. He said they run adoption specials through their partnership with PetSmart for $65. He said animals that are adopted from WAHS are fully vaccinated, microchipped, and spayed or neutered. Mr. Mike Bonney, citizen, addressed the Council and said in response to Mohave County declining to renew or approve an extension on their contract with WAHS, they decided to take sheltering services in-house and are going to lose approximately $460,000 per year. He said the City can take sheltering services in-house but there are a lot of extenuating circumstances that the City Council should take into serious consideration. He added that his interest in the contract is purely from a resident’s perspective, but noted that his firm is the accounting firm for WAHS. He said through some efforts of WAHS board members, the contract was brought back to the table for discussion. He said WAHS will have to find $25,000 to replace the loss in revenue, but the community is behind this contract and is behind WAHS. He noted that the community raised over $1.1 million for the new facility, and reminded the Council that the contract is between WAHS and the City, and any letters and information that the Council may have received about the management or nature of WAHS should not be a consideration in deciding if the Council is in favor or against the contract. He said the Council needs to decide what is best for the community. Councilmember Dolan said he understands the action before the Council is to approve or decline a contract for sheltering services with WAHS and said he is 100 percent supportive Lake Havasu City Page 12 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 of WAHS as an organization; however, his biggest concern is that a portion of the contract states that the contractor agrees to perform services in accordance with Arizona, Mohave County, and City ordinances, laws, and regulations, and some of the things that he has received and heard implies that they are not following that. Councilmember Dolan said while some people feel that it may not be the job of the council to discuss the management of the organization; it is the council’s responsibility before going into a contract to make sure they are following the laws. Mr. Bonney said he does not have any firsthand knowledge about any of the undocumented, unsubstantiated allegations that have been made, and asked the Council to listen to the voice of the crowd versus the voice in the crowd. The following people addressed the Council regarding the operations, management, and allegations of WAHS: • Mr. Robert Loring, citizen • Ms. Sheryl Doms, citizen and dog trainer • Ms. Linda Denovan, citizen and current WAHS board member Councilmember Lin asked how many members serve on the WAHS board, to which Ms. Linda Denovan replied seven. Councilmember Lin asked if it was true that since January six board members have left, to which Ms. Denovan replied no. She said two members resigned and prior to that two members’ terms expired. Councilmember Dolan asked Ms. Denovan what actions the board has taken in regards to the Executive Director’s son. He said it was his understanding that the board was instructed to fire him and he was hired back as an independent contractor, to which Ms. Denovan replied that was before her time on the board. Councilmember Dolan said what the Council has heard in regards to fundraising is very disturbing and understands that a lot of organizations encourage people to donate to their will but there is a fine line in terms of ethics. He said according to public records the Executive Director is being sued for doing that very thing to someone as of 22 months ago and asked if the board has taken any actions to address that publicly, to which Ms. Denovan replied yes, and said the lawsuit that was mentioned has nothing to do with WAHS and nothing to do with any fundraising. • Mr. Roger Galloway, citizen and former WAHS board member • Ms. Logan Woods, citizen and former WAHS employee and volunteer • Ms. Nancy Gieck, citizen and current WAHS board member • Mr. Mark Ethridge, citizen Lake Havasu City Page 13 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 • Mr. Travis Ramsey, citizen Mayor Sheehy said for the record the City does not own or operate WAHS. • Ms. Leslie Mansell, citizen and former WAHS board member • Ms. Julie Crawford, citizen and WAHS employee • Ms. Trinna Lee, citizen and former WAHS volunteer • Ms. Selena DeNuno, citizen • Ms. Brandi Engler, citizen and current WAHS employee • Ms. Jill Spangler, citizen and current WAHS volunteer • Ms. Linda Shelton, citizen • Ms. Jennie Petrae, citizen • Mr. Robert McKinney, citizen Ms. Engler clarified that WAHS is a no-kill ethics shelter, which means if an animal is brought in that is too aggressive and cannot be rehabilitated, or too injured or ill to be helped, they have to put it down. Councilmember Dolan said when an animal is dropped off at the shelter they have to fill out a euthanasia form and asked if this is because of statistics, to which Ms. Engler said there are a lot of shelters that do this because they have to make the public aware of the possibility that the animal may not be adopted. She said the animal may not go up for adoption but it does not mean that it will be euthanized. She noted that the form is just a precaution. Councilmember Dolan asked who makes the decisions on which animals are put down, to which Ms. Engler said in cases where an animal is sick the veterinarian, Dr. Litchfield, would make that decision. She said with an aggressive animal they perform an evaluation to determine if the animal is safe to be around the public. Councilmember McCoy said it was mentioned that if an animal is deemed too aggressive to be adopted it would not necessarily be euthanized, to which Ms. Engler clarified that if an animal is too dangerous or aggressive where WAHS cannot handle the animal they would have to euthanize it. Councilmember McCoy asked if the animals are given a second chance or another evaluation before being euthanized, to which Mr. Jenkins explained the SAFER Test. He said not every animal that received a bad rating by the first employee that performed the evaluation was deemed euthanized, and said it usually went through a process with several SAFER Tests and then through the committee to discuss the future of the animal and viability of adoption. Lake Havasu City Page 14 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Councilmember Groat discussed the process of euthanasia and said from what he read only a licensed veterinarian could administer euthanasia or under the director such policies could be applied, and asked if a veterinarian technician could perform euthanasia if they had the certification and who at WAHS is able to euthanize an animal, to which Mr. Jenkins said he approached the State Veterinary Board last week to start this process and said a licensed DVM, in this case Dr. Litchfield, or a certified veterinary technician under the guidance of the doctor. He said they have stopped euthanasia being done by veterinary technicians who were not certified, such as kennel technicians. In response to Councilmember Groat’s question, City Attorney Kelly Garry stated that there is a 30-day notice to terminate for any reason in the contract. • Dr. R G Litchfield, citizen and current WAHS Veterinarian There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Dolan said he has served on many community boards and it is an honor and it is also a responsibility. He said as a board member there is a fiduciary responsibility to the organization not to necessarily protect the people that run the organization but to protect the organization, and said sometimes it is to protect the organization from the people operating the organization. He said decisions need to be made on what is best for the organization, and added that he received four emails prior to the meeting from WAHS board members assuring him that they take these allegations very seriously; however, they say they are coming from disgruntled employees, volunteers, and board members which he has concerns about. He said the board members need to look into these complaints and make sure things are being operated correctly. Councilmember Dolan added that the contract is needed for the city but noted that at any time the City can pull back and he is going to be asking questions. He said there are serious violations including changing of timecards, not paying time over 40 hours, along with other allegations that he believes the board needs to look into. Councilmember Dolan said he believes WAHS is an amazing organization, but it is bigger than the person running it or the board of directors and they need to protect it. Vice Mayor Lane said what he has heard from everyone is that WAHS is a great organization. He added that there have been allegations against some employees which the board is now aware of these issues, and added that any criminal activity at WAHS needs to be reported to the Police Department. He said what is before the Council is a fair contract that was negotiated between WAHS, the City Manager, Mayor, and Police Department for sheltering services. Lake Havasu City Page 15 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Councilmember McCoy said there are issues and the board needs to spend the time to see what is going on, document, and talk to the people that were willing to put their name on the letters the City Council received. She said the contract before the Council is a good contract and stated that she would like to see more information in the future from WAHS as to the number of animals and how many are being put down. She said this is information that the Council and board members should have, and everyone involved needs to do their due diligence. Councilmember Coke said she appreciated everyone's input but there is only so much that the City Council can do for an organization that is not their responsibility. She said the Council has to make a decision on the contract and there are rules and regulations in the contract that WAHS must uphold or the City will end the contract. Councilmember Groat discussed the WAHS financials and growth patterns and said the contract amount represents approximately 12 percent of their overall budget. He said the contract is an important aspect to the mission of WAHS. Councilmember Dolan moved to approve and authorize the City Manager to execute a five-year Animal Care and Sheltering Services Contract with the Western Arizona Humane Society from July 1, 2019, through June 30, 2024, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember McCoy and Councilmember Dolan Nay: 1 - Councilmember Lin 8.12 ID 19-2060 Adopt Resolution No. 19-3323 Approving an Intergovernmental Agreement with the Mohave County Flood Control District for Flood Control Purposes (Dustin Salisbury) Project Manager Dustin Salisbury advised that the item before Council is an Intergovernmental Agreement with the Mohave County Flood Control District. He outlined the following in his presentation: Intergovernmental Agreement between the Mohave County Flood Control District and Lake Havasu City for Flood Control • Will fund construction costs associated with the Slope Stabilization & Improvement of Havasupai Wash #3 • Will fund design of Avalon Drain #2 Section 4.1.4 Includes a new provision to cost-share the funding for the County’s “ALERT Flood Warning System” • Cost Share Total - $650,000 (Deducted before disbursements) Lake Havasu City’s share - $202, 883 (Approximate) Lake Havasu City Page 16 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 • Will provide $2,189,436 funding for the City’s Flood Control Program Mr. Salisbury provided pictures of the ALERT Flood Warning System stations, as well as pictures of the improvements to the washes. In response to Councilmember Groat’s question, Mr. Salisbury said the City receives all flood control funding from Mohave County therefore without it, the City would have to find money to continue funding these improvements. Councilmember Groat asked how this impacts the citizens, to which Mr. Salisbury said as the washes deteriorate they get deeper and the slopes fall in which encroaches onto properties. Mr. Salisbury said a lot of the washes have block walls that are falling and need to be stabilized. Mr. Salisbury said the uncontrollable flows and the head-cutting from the water has great potential to impact and damage property. Mayor Sheehy asked if the City was included in the task force or committee for the ALERT Flood Warning System, to which Mr. Knudson said City staff was invited to a meeting to discuss the importance of the ALERT Flood Warning System from the County’s perspective. Mr. Knudson said the system makes sense for the communities in Mohave County, and added that the goal was to identify funds from the four cities to help supplement a program that the County has been administering for over a decade. Mr. Knudson said City staff made the case to the County that it is unfair that Lake Havasu City is contributing the most towards the system and benefiting the least out of the five entities, including the County. He added that the Intergovernmental Agreement (IGA) before the Council identifies the reduction of the $200,000 towards the ALERT Flood Warning System administered by the Council and includes the City’s $2.2 million allotment that is used for projects that are vital to our community. Councilmember Dolan asked how much the other cities are contributing towards the ALERT Flood Warning System, to which Mr. Knudson replied approximately $200,000 from Lake Havasu City, $55,000 from Kingman, and $80,000 from Bullhead City. Councilmember Dolan asked how many stations are located in Lake Havasu City, to which Mr. Knudson replied of the 196 stations in Mohave County, six are located in Lake Havasu City. Councilmember Lin asked why Lake Havasu City is paying more than the other cities, to which Mr. Knudson said the formula from the County is based on the assessed valuation not the benefit of the system. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to adopt Resolution No. 19-3323 approving the Lake Havasu City Page 17 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 Intergovernmental Agreement with the Mohave County Flood Control District for flood control purposes, seconded by Councilmember Groat, carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan 8.13 ID 19-2058 Ratify City Manager’s Execution of Amendment No. 1 to the Construction Management Professional Services Agreement for the Lake Havasu Avenue Reconstruction Project with Civil & Environmental, Inc. (Jason Hart) Project Manager Jason Hart advised that as a component to any project the City awards in terms of contracts, the City also typically awards a construction management contract with a consultant to manage and assist with inspections, administration management, and submittal reviews. He said the Lake Havasu Avenue Reconstruction Project was extended 34 days as a result of change orders that were encountered; however, the contract with the consultant did not cover the additional 34 days, therefore the City needed to obtain funding to continue to have the construction management team on site for the additional construction days. Councilmember Lin asked why the project was delayed 34 days, to which Mr. Hart said with a project this size there are unknown delays that are encountered with underground utilities, ordering materials, and going back to the drawing board. He said there was also a lot of rain which caused additional delays in construction. Mayor Sheehy stated that the construction management should of managed better and kept it within what the City agreed on. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Groat moved to ratify the City Manager’s execution of Amendment No. 1 to the Construction Management Professional Services Agreement for the Lake Havasu Avenue Reconstruction Project with Civil & Environmental, Inc., seconded by Councilmember Dolan, and carried by the following vote: Aye: 6 - Vice Mayor Lane, Councilmember Coke, Councilmember Groat, Councilmember Lin, Councilmember McCoy and Councilmember Dolan Nay: 1 - Mayor Sheehy 9. CURRENT EVENTS Lake Havasu City Page 18 Printed on 7/11/2019 City Council Minutes - Final June 25, 2019 There were no council committee reports. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, July 9, 2019 @ 6:00 p.m. - Regular Meeting & Property Tax Levy Adoption Tuesday, July 23, 2019 @ 6:00 p.m. - Regular Meeting 12. FUTURE DISCUSSION ITEMS There were no requests from Council for future discussion items. 13. ADJOURN Upon motion by Vice Mayor Lane, and seconded, the meeting adjourned at 8:55 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 25th day of June, 2019. 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 19 Printed on 7/11/2019