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, November 12, 2019 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. 2. INVOCATION: Pastor Dean Wiles, Abundant Grace Church Pastor Dean Wiles with Abundant Grace Church gave the invocation. 3. PLEDGE OF ALLEGIANCE: Havasu Freedom Foundation Havasu Freedom Foundation 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 There were no requests to address the Council. 6. CONSENT AGENDA 6.1 ID 19-2203 Approve the October 22, 2019, City Council Regular Meeting Minutes and November 5, 2019, City Council Special Meeting Minutes (Kelly Williams) 6.2 ID 19-2192 Ratify the Submission of a Grant Application to U.S. Soccer Foundation for a Safe Places to Play Grant for Additional Lighting at Cypress Park and Authorize Execution of Necessary Documents and Implementation of the Activities Funded by the Grant (Mike Keane) 6.3 ID 19-2191 Approval of the Final Condominium Plat for Riverwalk Condos Plat of Tract 2268, Block 10, Lot 2, 2042 Swanson Avenue, Creating 13 Residential Townhouse Condominium Units and Common Parcel A (Stuart Schmeling) 6.4 ID 19-2202 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Lake Havasu City Page 1 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 Tuesday, November 26, 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 19-2197 Fiscal Year 2018-19 4th Quarter Contracted Service Agency Reports (Chief Doyle) Mayor Sheehy noted that this item was for informational purposes only. 7.2 ID 19-2199 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. 7.3 ID 19-2204 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • The Lake Havasu City Police Department was awarded a Governor’s Office of Highway Safety Grant. • Water Conservation Specialist Briana Morgan was recognized for her efforts educating citizens in the City’s Follow the Water Tour. • City Council participated in the London Bridge Days Parade on Saturday, October 26, 2019, and the Veterans Day Parade and Ceremony at Wheeler Park on November 11, 2019. • Announced various proclamations, certificates, and ribbon cutting events. • Mayor Sheehy and Kingman Mayor Jen Miles welcomed representatives from Arizona Town Hall and First Things First, as well as community members to the Mohave Community College in Lake Havasu City. The group focused its efforts discussing “Strong Families, Thriving Children.” • Mayor Sheehy and Administrative Services Director Jill Olsen met with Arizona State Treasurer Kimberly Yee. • Mayor Sheehy attended the Concerned Veterans of America with Congressman Gosar at the London Bridge Resort. • An Open House will be held for the High Intensity Activated Crosswalk (HAWK) Project at Smoketree Elementary School on November 18, 2019, at 5:30 p.m. • Mayor Sheehy proclaimed the month of November as Kindness Month. Students from Smoketree Elementary, Starline Elementary, and Jamaica Elementary Lake Havasu City Page 2 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 Schools were in attendance to accept the proclamation. 8. PUBLIC HEARINGS 8.1 ID 19-2163 Series #06 Bar Liquor License, Lake Havasu Golf Club, 2400 Clubhouse Drive/Lewkowitz (Kelly Williams) Ms. Williams advised that Ms. Andrea Dahlman Lewkowitz has applied for a Series #06 Bar Liquor License for Lake Havasu Golf Club located at 2400 Clubhouse Drive. Ms. Williams noted that all posting requirements have been met, all fees have been paid, and no objections were received. She added that the location is properly zoned for a Series #06 liquor license. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Councilmember Dolan moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #06 bar liquor license for Lake Havasu Golf Club, 2400 Clubhouse Drive, 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 8.2 ID 19-2175 Series #07 Beer and Wine Bar Liquor License, Finney’s, 317 Lake Havasu Avenue South/Whetten (Kelly Williams) Ms. Williams advised that Ms. Jennifer Lynn Whetten has applied for a Series #07 Beer and Wine Bar Liquor License for Finney’s located at 317 Lake Havasu Avenue South. Ms. Williams noted that all posting requirements have been met, all fees have been paid, and no objections were received. She added that the location is properly zoned for a Series #07 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 #07 beer and wine bar liquor license for Finney’s, 317 Lake Havasu Avenue South, 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 Lake Havasu City Page 3 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 8.3 ID 19-2177 Introduce Ordinance No. 19-1226 Amending Lake Havasu City Code Section 5.20, Vacation Rentals (Kelly Garry) City Attorney Kelly Garry advised that this item is to introduce an ordinance amending the City Code regarding vacation rentals (short-term rentals). Ms. Garry said earlier this year, new laws went into effect that amended the state laws regarding vacation rentals giving the City some additional tools and enforcement mechanisms to address concerns raised by citizens across the state. Ms. Garry said it is important to note that vacation rentals is a matter of statewide concern which means that it has been preempted by the state and there is nothing further that the City can do to regulate vacation rentals other than what is allowed by state statutes. Ms. Garry said although there are other things that people may want the City to do or would like to see, the City is limited by what the state allows and this ordinance is suggesting to implement every possible mechanism under state law. Ms. Garry said the new law allows the City to require a “local contact person” which can be the owner or an owner’s designee who is responsible for responding to complaints in a timely manner. She explained that the City ordinance defines the term “timely manner” and states that when a complaint is received, telephonic contact with the occupants must be made within 30 minutes of each call for each incident or in-person contact if unable to reach telephonically within 45 minutes. She said the the local contact person must then report back to the City of how the incident was handled within 45 minutes of each call from the City and added that failure for that person to respond to calls or complaints would be a violation of the City Code. Ms. Garry said the new law also requires the City to report any verified violations to the Arizona Department of Revenue (DOR) which leads to additional tiered violations and fines. She explained that the City’s ordinance states that if a person fails to obtain a Transaction Privilege Tax (TPT) license and fails to list their TPT license number on each advertisement for the vacation rental, it would result in a $250 fine for the first violation and a $1,000 fine for any second or subsequent violation. Ms. Garry said other violations such as nuisances, public safety, trash, or failure to provide a local contact person, would result in a $500 fine for the first violation, a $1,000 fine for a second violation within a 12-month period, and then a third or any subsequent verified violation on the same property within the same 12-month period would be fined either 50 percent of the gross monthly revenues for that month of the lodging accommodation for which the violation occurred or $1,500, whichever is greater. Ms. Garry noted that staff met to discuss these changes and how the City plans to process and implement the changes moving forward, and staff is confident that the City can be successful with these new tools. Mayor Sheehy said there was one additional provision in state law that now prohibits Lake Havasu City Page 4 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 vacation rentals to be used for event type venues, to which Ms. Garry stated that was correct, and added that the law specifies that a rental may not be used for any special event that would otherwise require a permit or license. Mayor Sheehy stated that the City established an ordinance in 2016; however, since then the state has determined this a statewide concern and made adjustments that resulted in the City’s ordinance not being valid. He noted that the City has been working hard to address the concerns from a local perspective, and added that he testified to an Ad-Hoc Committee that was put together by Senator Fann to address some of the issues that Lake Havasu City is experiencing with vacation rentals and how they impact other communities. He said some provisions in the new law are similar to what Lake Havasu City implemented in 2016; however, it is missing things like the good neighbor brochure, which was working well for Lake Havasu City. He said the City has reached out to property managers to help with some best practices while the City continues to advocate for local control. Councilmember Groat asked if the City has experienced any issues with the local contact person not being able to make contact within the 30-minute timeframe, to which Ms. Garry replied that the City has not had any issues because it is not something that the City is currently doing. She noted that this new process will be handled by the Police Department; therefore, any issues that come up will have to be explained and taken into consideration. Councilmember Groat asked for clarification on the two ways in which a person could be contacted, to which Ms. Garry explained that when a vacation rental is registered the owner will list the name, address, and phone number of a local contact person who can be reached in the event of a complaint. She said for purposes within the City Code, the definition of “timely and appropriate manner” means that the local contact person makes telephonic contact with the occupants of the subject vacation rental within 30 minutes of a call for each incident, and then if they are unable to reach them by telephone they would be required to make in-person contact within 45 minutes and report back to the City with the disposition and handling of the reported incident within 45 minutes of each call from the City for each incident. Councilmember Groat said the majority of complaints would most likely be generated at night, to which Ms. Garry noted that for that reason the enforcement of this chapter would be handled by the Police Department. There was discussion regarding the two tiers of violations. Councilmember Groat asked how advertisements in other countries would be handled, to Lake Havasu City Page 5 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 which Ms. Garry that the state statute would only be applicable to advertisements in Arizona. Mayor Sheehy said state law requires vacation rentals in Arizona to have a TPT license and to place that license number on any advertisements for renting that dwelling. Councilmember Groat asked if the license number would be required on advertisements in another state or country since state law would not be applicable to interstate commerce or international commerce, to which Ms. Garry stated that if an owner is renting a dwelling in the state of Arizona they would be required to place the license number on any advertisements. In response to Councilmember Groat’s question, Ms. Garry said failure of the local contact person to respond to calls or complaints would be a violation of the City Code and would result in a $500 fine for the first offense. She said a second offense within a 12-month period would result in a $1,000 fine, and a third and any subsequent offense within the same 12-month period for the same property would be 50 percent of the gross monthly revenues for that month of the lodging accommodation of which the violation occurred or $1,500, whichever is greater. Vice Mayor Lane asked for clarification on when the time begins for the local contact person to make telephonic or in-person contact, to which Ms. Garry said under the new program when a complaint is received the Police Department will be able to identify whether the property is registered as a vacation rental and the contact information for the local contact person. She said the Police Department will then contact the local contact person who will be responsible for contacting the occupants of the vacation rental by phone within 30 minutes, or in-person within 45 minutes of when the complaint is received. Councilmember Dolan said if a property is identified as a vacation rental and a noise complaint is received, would the Police Department respond to monitor the noise level or would they now have to make contact with the local contact person to remedy the noise complaint, to which Ms. Garry replied that the Police Department would screen the complaints and determine the most appropriate action. Mr. Knudson said the City now has the ability through state statutes to fine the property owner as opposed to reacting to the tenant. He said the Police Department will still have the ability to cite tenants if there is illegal activity; but this gives the City the ability to address issues with the property owner and hold them accountable. Councilmember Lin asked who would collect the fines, to which Ms. Garry said if it is a state violation; the fines would be collected by the state. She said the other violations would be collected by the City. Lake Havasu City Page 6 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 Councilmember Groat asked how the fines were determined, to which Ms. Garry stated that the fines were taken directly from state statute. Councilmember Groat asked if the 45-minute timeframe to make in-person contact would begin when the complaint is lodged or after the 30 minute telephonic timeframe, to which Mayor Sheehy said the ordinance reads that the local contact person would have 45 minutes from when the 30 minutes has passed. Mayor Sheehy opened the public hearing. Ms. Nancy Campbell asked if a Homeowner Association (HOA) would also need to copy the City’s rules on vacation rentals or if they would be inclusive to the HOA, to which Mayor Sheehy replied that HOA’s have more ability to regulate than the City; however, they still have to comply with local ordinances. Ms. Campbell asked if vacation rentals within an HOA would still be required to obtain their TPT license, to which Mayor Sheehy responded yes. Ms. Campbell asked if someone with a complaint regarding a vacation rental within an HOA would make contact with the Police Department, to which Mayor Sheehy responded yes. Mr. George Sharma, Desert Resort Properties, Inc., addressed the Council and said he has been in the vacation rental business for 26 years and believes the City needs to focus more on the vacation rentals that do not have their TPT license because they are collecting revenues but not paying taxes. He said property owners who are managing their vacation rentals through a professional management agency should not be required to have their own TPT license because the professional management agencies are collecting the revenues and paying taxes using their TPT license number for the properties they are managing. Mayor Sheehy said the City would look into Mr. Sharma’s questions to get more clarification. Mr. Sharma added that the properties managed by professional management agencies are not advertising on their own. He said the violators are those that are advertising on Vrbo and Airbnb. There being no further comments, Mayor Sheehy closed the public hearing. Councilmember Dolan moved to introduce Ordinance No. 19-1226 amending Lake Havasu City Code Section 5.20, Vacation Rentals, in its entirety, seconded by Councilmember McCoy, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Lin, Councilmember McCoy and Councilmember Dolan Lake Havasu City Page 7 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 Nay: 1 - Councilmember Groat 8.4 ID 19-2194 Approve Sole Source Purchase for Upgrade of the UV Disinfection Wiper System at the Mulberry Treatment Plant from DC Frost Associates, Inc. (Mike Slettebo) Utility Supervisor Mike Slettebo advised that this item is to approve a sole source purchase to upgrade the Ultra Violet (UV) disinfection wiper system at the Mulberry Treatment Plant (MTP) from DC Frost Associates, Inc. Mr. Slettebo explained that the co-mingling pond at the MTP is a 1.5 million gallon storage pond that provides reclaimed water for the London Bridge Golf Course and plant water for various purposes with plans to include Cypress Park for future effluent use. He said UV is the final and most important step in the treatment process to provide safe effluent to users, and noted that the MTP receives approximately 1.2 million gallons of raw influent per day and has a usage rate of 1.6 million gallons per day. Mr. Slettebo explained the limits of the MTP’s aquifer protection permit from the Arizona Department of Environmental Quality (ADEQ) for fecal coliform. Mr. Slettebo said the City’s current wiper system, installed in 2003, is critical for cleaning of the lamp’s quartz tubes to allow the UV light clarity to make the necessary kill of bacteria. He explained that the City utilizes a total of 212 low-pressure amalgam lamps which are the lowest electrical demand of UV lamps available, and explained that UV disinfection is the most effective, safe, and environmentally friendly way to disinfect wastewater because it provides a broad spectrum protection against a wide range of pathogens, including bacteria, viruses, and chlorine-resistant protozoa. Councilmember Dolan asked about the increase in the cost for the bulbs and questioned whether the City’s current system will need to be replaced in the future, to which Mr. Slettebo said the increase is due to the stainless steel canisters. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. Vice Mayor Lane moved to approve the sole source purchase of UV Disinfection Wiper System for the Mulberry Treatment Plant exceeding $50,000 for FY 2019-20 from DC Frost Associates, Inc., 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 9. CURRENT EVENTS Lake Havasu City Page 8 Printed on 11/27/2019 City Council Minutes - Final November 12, 2019 There were no council committee reports. 10. CALL TO THE PUBLIC There were no requests to address the Council. 11. FUTURE MEETINGS Tuesday, November 26, 2019 @ 6:00 p.m. – Regular Meeting Tuesday, December 10, 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 6:56 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 12th day of November, 2019. I further certify that the meeting was duly called and posted, and that a quorum was present. ____________________________________ Kelly Williams, City Clerk/MMC Lake Havasu City Page 9 Printed on 11/27/2019