City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor David Lane Police Facility Councilmember Nancy 2360 McCulloch Blvd North Campbell Lake Havasu City, Arizona Councilmember Jeni Coke 86403 Councilmember Jim Dolan www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron Moses City Council Regular Meeting Minutes - Final Tuesday, December 8, 2020 6:00 PM 1. CALL TO ORDER Mayor Sheehy called the meeting to order at 6:00 p.m. Mayor Sheehy announced that members of the public can attend in-person or watch or listen to the meeting on Channel 4, or live stream on the City’s website. He added that public comments are being accepted by emailing the City Clerk at cityclerk@lhcaz.gov at least one-hour prior to the posted start time of the meeting. 2. INVOCATION: Stephanie Lueras, Community Presbyterian Church Ms. Stephanie Lueras, Community Presbyterian Church, gave the invocation. 3. PLEDGE OF ALLEGIANCE: Lake Havasu Chamber of Commerce Ms. Lisa Krueger, President/CEO of the Lake Havasu Chamber of Commerce, led in the Pledge of Allegiance. Ms. Krueger announced that they will be holding a holiday ham drive event on Wednesday, December 16, 2020, from 2:00 p.m. to 6:00 p.m. between Jersey’s Grill and Havasu Hardware. 4. ROLL CALL Present: 6- Mayor Cal Sheehy, Vice Mayor David Lane, Councilmember Jeni Coke, Councilmember Jim Dolan, Councilmember Nancy Campbell and Councilmember Cameron Moses Absent: 1- Councilmember Michele Lin *Councilmember Jim Dolan was present via remote conferencing. 5. CALL TO THE PUBLIC Mayor Sheehy said over the past several months a number of citizens have addressed the Council on items and have provided some inaccurate information. He said Lake Havasu City does not have a mask proclamation; however, public health best practices encourages the use of masks when appropriate and the City encourages citizens to educate themselves, follow best practices, and take personal responsibility. He said Lake Havasu City Councilmembers all took an oath to uphold the constitution, which is the supreme law Lake Havasu City Page 1 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 of the land and as a city in America, the Council identifies as a city that upholds the constitution. Mayor Sheehy said the City has not closed any businesses and has educated the business community and citizens on the various executive orders issued by the Governor. He said the City is not discussing business closures, facemask requirements, or sanctuary city resolutions this evening as these items are not on the agenda. He said the Council asks those in attendance to practice decorum and mutual respect amongst speakers. Ms. Christine Simmons, citizen, addressed the Council and thanked the Police Department for their quick response to a report of night shooting in the desert. She said the City needs a second SARA Park on the north end with multi-use trails to accommodate hikers, horseback riders, and off-road vehicles. She reminded desert users to be responsible and clean up after themselves to keep the desert a safe environment for all citizens to enjoy. Ms. Simmons invited the Council and public to attend a desert clean-up event on March 26 and 27, 2021. The following individuals addressed the Council in support of adopting a resolution proclaiming Lake Havasu City a constitutional sanctuary city: • Mr. Bill Mitchell, citizen • Mr. Richard Hawkins, citizen • Ms. Sara Jones, citizen • Ms. Karen VanderJagt, citizen • Mr. Greg Befort, citizen • Mr. Bob Bendels, citizen • Mr. David Lerner, citizen • Ms. Nikki Garrison, citizen • Mr. Stephen Tuminello, citizen • Ms. Cheryl Metcalf, citizen • Ms. Crystal Leffler, citizen • Mr. Dennis Murdoch, citizen • Mr. Day Wynn (anonymous), citizen • Ms. Julie Aguilar, citizen • Mr. John Pohener, citizen • Ms. Yolanda Bendels, citizen Mr. James Bucholtz, citizen, addressed the Council regarding the poor condition of the street repairs and debris left on the sidewalks. He asked how many of the Councilmembers and City staff inspect the work that is being done and asked that the City not use this company again. Lake Havasu City Page 2 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 City Clerk Kelly Williams said one written public comment was received on December 7, 2020, with a subject line of “Current Topics.” Ms. Williams read the public comment into the record as follows; “To the Mayor and City Council, Lake Havasu City I was hoping to attend the next Council meeting and make this request before the Council in person. Since meetings have been canceled, here is my request to the Mayor and Council. I respectfully request that the Mayor and City Council re-institute a mask mandate for the City of Lake Havasu. I realize that the Council is concerned for the economic livelihood of the city. In response - I would be shopping in stores more, browsing in stores more, buying more stuff and spending more money in our stores IF I felt safe in the store environment. Yes, the sores may post a "wear a mask" poster outside the store but the reality is store management doesn't enforce the request (who wants to get assaulted by a customer) and too many people are in defiance and ignorance regarding the benefit of wearing a mask. There is scientific data to support the need to wear a mask - as you well know. I hope the Council will show courage and concern for the citizens of Lake Havasu and do one thing you can do to put us on a path toward community health and economic viability. Thank you. Respectfully, (submitted by) Toni Bayer.” 6. SELECTION OF VICE MAYOR Mayor Sheehy said in accordance with City Code the selection of vice mayor is done annually the first meeting in December. Vice Mayor Lane said he appreciated the Council and public's support serving as Vice Mayor for the past two years. Vice Mayor Lane nominated Councilmember Coke for the position of Vice Mayor for 2021. Councilmember Dolan seconded the nomination. Councilmember Coke accepted the nomination. There were no other nominations for Vice Mayor. Vice Mayor Lane moved to nominate Councilmember Coke for the position of Vice Mayor for 2021, seconded by Councilmember Dolan, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 7. CONSENT AGENDA 7.1 ID 20-2611 Approve the November 24, 2020, City Council Regular Meeting Minutes (Kelly Williams) 7.2 ID 20-2605 Adopt Resolution No. 20-3457 Authorizing the Submission of an Application for a Grant with the Arizona Department of Veterans’ Services Lake Havasu City Page 3 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 to Enhance Treatment and Testing Services in Veterans Treatment Court, and Authorizing Execution of Necessary Documents and Implementation of the Activities Funded by the Grant (Mitchell Kalauli) 7.3 ID 20-2604 Adopt Resolution No. 20-3458 Ratifying the Submission of an Application for the Walmart Community Grant to Purchase a Mobile Public Address System, and Authorizing Execution of Necessary Documents and Implementation of the Activities Funded by the Grant (Jess Knudson) 7.4 ID 20-2608 Adopt Resolution No. 20-3459 Abandoning the Southerly 10-foot by 114.81-foot Portion of the 20-foot by 114.81-foot Public Utility and Drainage Easement Located on the Northerly Property Line of Tract 2244, Block 6, Lot 3, Except the East 5 feet Thereof (Luke Morris) 7.5 ID 20-2612 Adopt Resolution No. 20-3460 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 2021 (Jill Olsen) 7.6 ID 20-2613 Adopt Resolution No. 20-3461 Approving the Submission of an Application for a Grant to the U.S. Department of Transportation, Federal Aviation Administration, for the Design of the Airport Runway Strengthening and Overlay Project, and Authorizing All Actions Necessary to Implement and Complete the Activities Outlined in the Application (Jeffrey Herb) 7.7 ID 20-2614 Adopt Resolution No. 20-3462 Approving the Submission of an Application for a Grant to the U.S. Department of Transportation, Federal Aviation Administration, for Reconstruction of Taxiway A and Connector Taxiways, and Authorizing all Actions Necessary to Implement and Complete the Activities Outlined in Application and Agreement (Jeffrey Herb) 7.8 ID 20-2615 Approve License Agreement with San Bernardino County for Use of Server Room and Antenna Space at the Lake Havasu City Police Facility (Chief Doyle) 7.9 ID 20-2610 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, January 12, 2021 (Kelly Williams) Vice Mayor Coke moved to approve the Consent Agenda as presented, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Lake Havasu City Page 4 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Absent: 1 - Councilmember Lin 8. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT 8.1 ID 20-2576 Go Lake Havasu Tourism Bureau Annual Update (Jess Knudson) Mr. Terrence Concannon, Go Lake Havasu Tourism Bureau, addressed the Council and gave an annual update from Go Lake Havasu covering the state of tourism over the past 12 months. 8.2 ID 20-2620 Announce Vacancies on Lake Havasu City Boards, Committees, and Commissions (Kelly Williams) Ms. Williams announced the current vacancies on various Lake Havasu City Boards, Committees, and Commissions. She said applications are available at City Hall and on the City’s website at www.lhcaz.gov. 8.3 ID 20-2609 City Manager’s Report (Jess Knudson) Mr. Knudson reported on the following: • Remembering the passing of City employee Mr. Jeff Cook, GIS Administrator. • Recognized 60 City employees for reaching milestone years of service with the City. • Recognized Police Officer Brent Skancke for receiving the Kiwanis Club “2020 Police Officer of the Year Award”. • City Council attended the 40th Annual Christmas Tree Lighting Ceremony at Wheeler Park. • Congratulated Councilmember Lin’s son, Chen Chen, for becoming a United States citizen. • Vice Mayor Lane presented a proclamation to John P. Steele in honor of his 95th birthday. • COVID-19 update. Councilmember Dolan thanked the City Manager for including information on the status of the hospitalizations. 9. PUBLIC HEARINGS 9.1 ID 20-2597 Series #7 Beer & Wine Bar Liquor License, Grapes N Grains, 2144 McCulloch Boulevard North/Whetten (Kelly Williams) Ms. Williams advised that Ms. Jennifer Lynn Whetten has applied for a Series #7 Beer & Wine Bar Liquor License for Grapes N Grains located at 2144 McCulloch Boulevard North. Ms. Williams stated 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 Lake Havasu City Page 5 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 beer and wine bar liquor license. There were no comments or questions from the Council. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. He noted that no written public comments were received. Vice Mayor Coke moved to recommend that the Arizona Department of Liquor Licenses & Control approve a Series #7 beer & wine bar liquor license for Grapes N Grains, 2144 McCulloch Boulevard North, seconded by Councilmember Moses, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.2 ID 20-2591 Adopt Ordinance No. 20-1245 Amending the Zoning Classification and District Boundary for 6800 Chenoweth Drive, APN 120-03-064, from A-P (Agriculture Preserve District) to I (Industrial District) (Luke Morris) City Planner Luke Morris advised that the subject property is just over nine acres on Chenoweth Drive located on the north end of the city about a half mile east of Lowe’s. He said the surrounding properties to the north and south are vacant and the adjacent properties to the east and west are open storage. Mr. Morris said the property is currently zoned A-P (Agriculture Preserve District) which is the original zoning designation assigned by the City because it was most comparable to Mohave County’s zoning. He said the applicant is requesting to rezone the property from A-P to I (Industrial District) which is the City’s highest zoning district and noted that the surrounding areas to the south are zoned A-P and areas to the north and west are zoned I. He said the applicant did not specify an intended use but any of the uses listed under the Permitted Uses Table for Industrial District are allowed. Mr. Morris added that the Planning and Zoning Commission approved this request. There were no comments or questions from the Council. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. He noted that no written public comments were received. Councilmember Lane moved to adopt Ordinance No. 20-1245 rezoning the property at 6800 Chenoweth Drive, APN 120-03-064, from Agriculture Preserve District to Industrial District, seconded by Councilmember Moses, and carried by the following vote: Lake Havasu City Page 6 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.3 ID 20-2592 Adopt Ordinance No. 20-1246 Amending the Zoning Classification and District Boundary for the Portion of 2301 Cup Drive, Tract 2319, Block 2, Lot 13A, as Shown on Parcel Plat Map 37-11, from GC (Golf Course District) to R-E (Residential Estates District) (Luke Morris) Mr. Morris said this item is to amend the zoning classification and district boundary for a portion of property purchased from the golf course located at the northeast corner of Fringe Drive and Cup Drive. Mr. Morris said the existing property is zoned R-E (Residential Estates District) and the portion of property purchased from the golf course is zoned GC (Golf Course District). He stated that the Council previously approved the abandonment of the 10-foot public utility and drainage easement running across the back of the original R-E zoned property, creating one property with two zoning districts. He said this request is to combine the properties to create one zoning which would allow for any of the uses and setbacks in the R-E zoning district. He added that the Planning and Zoning Commission approved this request. There were no comments or questions from the Council. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. He noted that no written public comments were received. Vice Mayor Coke moved to adopt Ordinance No. 20-1246 amending the zoning classification and district boundary for the portion of 2301 Cup Drive, Tract 2319, Block 2, Lot 13A, as shown on Parcel Plat Map 37-11, from Golf Course District to Residential Estates District, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.4 ID 20-2616 Adopt Resolution No. 20-3463 Revising Resolution No. 20-3438, Suspending Park Rental Fees, by Including Suspension of Certain Expansion of Premises and Temporary Use Permit Fees to Expand Outdoor Seating Opportunities to Allow for Adequate Social Distancing (Jess Knudson) Lake Havasu City Page 7 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Mr. Knudson advised that this item is a draft resolution to continue suspension of park rental fees for use of the parks. He said the Council previously adopted a resolution in direct response to closures of fitness clubs and gyms that was set to expire December 31, 2020; therefore, this resolution extends the suspension of fees for parks until the expiration of the proclamation declaring the existence of a local emergency. He added that this resolution also includes waiving of fees for expansion of premise and temporary use permits to encourage outdoor seating opportunities for businesses and restaurants. Mayor Sheehy said he supports ways in which the City can help expedite the processes for businesses to be able to innovate. Councilmember Lane said he supports allowing businesses the ability to expand their footprint and added that the Governor’s office also grant funding available for business looking to expand. Mayor Sheehy said the Governor’s office has grant funding (up to $10,000) available to businesses that are looking to expand patio/outdoor accommodations for this process. He said businesses interested would apply directly through the Governor’s office or through the Arizona Commerce Authority. Mr. Knudson stated that this temporary change allows staff to combine the extension of premise application (City Clerk’s office) and temporary use permit application (Development Services Department) into one program designed to encourage businesses to take advantage of this opportunity. He said more information is available on the City’s website at www.lhcaz.gov. Mayor Sheehy opened the public hearing. Mr. Mitchell, citizen, addressed the Council and asked if the Governor’s funding is tied to compliance with mask mandates or strictly to help businesses expand their premises. He said he has heard many businesses mention that they have had to sign a compliance attestation that they will comply with mask mandates. Mayor Sheehy said in reviewing the application and information on the Governor’s website, businesses will have to show that they have applied for an extension of premise for funding but no mitigation strategies are tied to the funding. Ms. Regan Ross, Go Lake Havasu, said a link to the City's application process will be added to the Arizona Commerce Authority’s website which will also include a link to the Governor’s executive order. She added that Go Lake Havasu is also willing to assist with spreading the word to local businesses and asked if the City has considered allowing for expansion of parklets for businesses that are not able to expand their premise. Lake Havasu City Page 8 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Mr. Richard Hawkins, citizen, addressed the Council and said in Walla Walla, Washington, they shut down some of their streets to allow for expansion of outdoor dining. There being no further comments, Mayor Sheehy closed the public hearing. He noted that no written public comments were received. Councilmember Dolan moved to Resolution No. 20-3463 revising Resolution No. 20-3438, suspending park rental fees, by including suspension of certain expansion of premises and temporary use permit fees to expand outdoor seating opportunities to allow for adequate social distancing, seconded by Vice Mayor Coke, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.5 ID 20-2617 Approve Cooperative Purchase of Services from Mythics, Inc., for Assessment of Oracle Fusion System, Annual Maintenance and Support for Oracle Fusion, and Cloud Services Utilizing Maricopa County’s Contract No. 180233 (Jill Olsen) Administrative Services Director Jill Olsen said staff is requesting approval of a cooperative purchase of services from Mythics, Inc., for software licensing and services related to the Oracle Fusion ERP system. Ms. Olsen said the agreement includes the assessment phase associated with reviewing the system and correcting configuration issues, maintenance and support for the ERP system, and software licensing. She said this license would replace all previous agreements with CherryRoad Technologies and added that City staff and Oracle selected Mythics, Inc., based on their positive reviews and technical skills. Ms. Olsen reviewed the agreements costs to include, $8,424, for the initial assessment, $199,089, for annual licensing, and $66,240, for first year support and maintenance. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. He noted that no written public comments were received. Councilmember Lane moved to approve the cooperative purchase of services from Mythics, Inc., utilizing Maricopa County’s Agreement No. 180233, and authorize the City Manager to execute the Cooperative Purchase Agreement on behalf of the City, seconded by Vice Mayor Coke, and carried by the following vote: Lake Havasu City Page 9 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.6 ID 20-2606 Approve Cooperative Purchase of Two Starcraft Starlight Ford Transit Low Floor ADA Buses from Creative Bus Sales Utilizing Arizona State Contract ADSPO16-102778 (Patrick Cipres) Mayor Sheehy announced that this item was tabled. There were no comments or questions from the Council. 9.7 ID 20-2600 Approve Sole Source Purchase of Badger Water Meters from Badger Meter (Greg Froslie) Public Works Director Greg Froslie said this is the City’s annual purchase of residential water meters. He said this is a sole source purchase as Badger Meter was established as the City’s standard water meter several decades ago and the City is looking to continue with this standardization. He said 9,000 of the 30,000 water meters in the City’s system are approximately 15 years or older which causes concerns in accuracy. He said the City’s water meter replacement program was put in place as part of the City’s asset management program to address replacement of water meters that are 15 years or older. Mayor Sheehy said this item requires Council approval as it exceeds the $50,000 threshold, but noted that the item has been budgeted in the current fiscal year. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. He noted that no written public comments were received. Vice Mayor Coke moved to approve the sole source purchase of Badger water meters from Badger Meter in the amount not to exceed $300,000, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.8 ID 20-2619 Award Bid for the Backup Water Supply Wells Project to Stewart Brothers Drilling Company (Jason Hart) Project Manager Jason Hart provided a brief overview of the City’s Water Master Plan and Backup Water Supply Wells Project. Mr. Hart said the City completed a Water Lake Havasu City Page 10 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Master Plan (Plan) in 2010 and a supplemental/addendum to the Plan in 2018 that addressed the City’s water supply capacity, critical supply reliability needs, and 10-year Capital Improvement Plan (CIP). He explained that the City has two water supplies: 1) the Horizontal Collector Well (main), and 2) a series of seven wells in the North Well Field. He said the focus of the Backup Water Supply Wells Project is to provide a backup water supply should the Horizontal Collector Well need to be shut down for maintenance. Mr. Hart explained that Jacobs Engineering evaluated the City’s wells and determined that two of the wells are no longer functioning and in need of replacement. He said Phase I of the project was to determine a location for the two new wells in place of the existing wells no longer in service. He said most of the seven existing wells in the North Well Field are located along London Bridge Road close to the City’s Water Treatment Plant and Public Works Maintenance Facility. He reviewed the wells’ water capacity as follows: Existing Well #18 (2.2 million gallons per day (mgd)), Existing Well #14 (1.6 mgd), New Well #22 (2.0 mgd), Existing Well #10 (1.4 mgd), and New Well #23 (2.0 mgd). Mr. Hart said the two new wells are estimated to bring in 1.4 to 2.0 mgd which is above the City’s targeted capacity of 7.6 mgd. Mr. Hart said in Phase 1 the City looked at five locations for exploratory drilling, including the Public Works Site, Water Treatment Plant Site, Old Well #3, Yacht Club parking lot, and State Park. He said of these five locations, the City was fortunate that the Public Works Site (New Well #22) and Water Treatment Plant Site (New Well #23) were good candidates for drilling two new wells for future use. He said the next step is Phase 2, which includes the well design, bid specifications, and bid documents to select a drilling contractor, and the second part of Phase 2 (Task 3) includes the completion of the well facility and pipeline that will be brought to Council at a future date. He added that the City is hoping to use some of the existing conveyance pipeline to reduce cost and replace a segment of older pipeline to increase reliability. Mr. Hart said this phase includes the abandonment of the two existing wells and the drilling, construction, development, testing, and disinfection of two new water supply wells that will be drilled approximately 570 linear feet and have an estimated capacity of 1,400 gallons per minute. He said the project will take approximately five months with an anticipated completion date in July 2021 and noted that the City received four bids with the low bid from Stewart Brothers Drilling Company for $1.408 million. Councilmember Lane asked about the lifespan of the new wells, to which Mr. Hart replied that the City anticipates a 40 to 50 year lifespan. Councilmember Moses asked what the lifespan was of the old wells, to which Mr. Hart said approximately 30 to 40 years. Councilmember Moses asked how long the City would Lake Havasu City Page 11 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 be able to shut down the Horizontal Collector Well using the two new wells, to which Mr. Hart replied that the new wells should allow the City to take down the well for as long as needed. Mayor Sheehy opened the public hearing. Ms. Christine Simmons, citizen, said she was concerned about drilling wells next to the Water Treatment Plant because of chemicals and leaching. She wondered if there was a better site. Mr. Knudson explained that the Water Treatment Plant is where all of the city’s water is sent to be treated before heading to the storage tanks for distribution to the citizens. Mr. Richard Hawkins, citizen, asked about the quality of the water as he remembers a time when the water was loaded with manganese from the old well system. He asked if citizens are going to see manganese again if the Horizontal Collector Well is shutdown. Mr. Hart said citizens should not see any manganese as the Water Treatment Plant has been upgraded and any manganese is treated right at the plant, which has been very effective. There being no further comments, Mayor Sheehy closed the public hearing. He noted that no written public comments were received. Councilmember Moses moved to award the Base Bid for the Backup Water Supply Project to Stewart Brothers Drilling Company, seconded by Councilmember Lane, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.9 ID 20-2593 Award Bid for the Sale of City Owned Property, Tract 119B, Block 7, Lot 2A, Located at 190 Hunter Lane to Rene Reynoso (APN 108-18-193) (Stuart Schmeling) Development Services Director Stuart Schmeling advised that this item is to award bid for the sale of City-owned property to Mr. Rene Reynoso in the amount of $202,700. Mr. Schmeling said the property is located at 190 Hunter Lane and is approximately 0.8 acres. He said the property appraised at $118,000 and was sold through an online auction format which the City ran from October 1, 2020, through November 2, 2020. He said in accordance with City Code the revenues generated from the sale of City property are Lake Havasu City Page 12 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 designated for CIP projects or an acquisition fund for the purchase of property for municipal purposes. Mayor Sheehy said the online function proved to be very beneficial for the taxpayers of Lake Havasu City. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing. He noted that no written public comments were received. Councilmember Dolan moved to award the bid for the sale of City Real Property, Tract 119B, Block 7, Lot 2A (APN 108-18-193) in the amount of $202,700 to Rene Reynoso, seconded by Councilmember Campbell, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan, Councilmember Campbell and Councilmember Moses Absent: 1 - Councilmember Lin 9.10 ID 20-2607 Adopt Ordinance No. 20-1247 Amending Lake Havasu City Code Title 14, Zoning, to Include Land Use Regulations for Recreational Marijuana in Accordance with the Smart and Safe Arizona Act (Luke Morris) City Attorney Kelly Garry said the Smart and Safe Arizona Act (Act) was certified and signed into State law by the Governor on November 30, 2020. She said the law consists of 17 pages of text that is more than just simply legalization of marijuana in Arizona, and reviewed the following provisions of the Act: • Legalizes the sale and adult use of marijuana • State license is necessary to sell marijuana • State to create rules to implement and enforce • City may only regulate as to reasonable zoning regulations that limit the use of land for marijuana establishments and marijuana testing facilities • City many not enact any regulation that is more restrictive than a comparable regulation that applies to nonprofit medical marijuana dispensaries • Renumber the existing medical regulations • Establish same land use regulations as medical • Tracked changes in your packet Ms. Garry said staff recommends the City adopt regulations that mirror what is in place currently for non-profit medical marijuana dispensaries. Lake Havasu City Page 13 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Mr. Morris explained that this item amends the Development Code dividing the existing medical marijuana regulations portion of the City Code into two subsections: one subsection for the existing medical marijuana regulations, and a new subsection for recreational marijuana regulations. Mr. Morris explained that the current land use regulations restrict the hours of operation from 7:00 a.m. to 10:00 p.m., require 1,000 feet from a daycare facility or another marijuana facility, require 500 feet from a religious facility, residential use or district, public park, recreation facility or playground, or Arizona liquor license. He said the amendments include new definitions for “marijuana establishment” and “marijuana testing facility” and added that the existing definitions for “medical marijuana dispensary or infusion facility” and “medical marijuana cultivation facility” would not change. Mr. Morris said staff proposes that the allowable uses for recreational marijuana mirror those for medical marijuana in the Permitted Uses Table with recreational marijuana establishments and testing facilities allowed in the same zoning districts, C-2 (General Commercial) and LI (Light Industrial), with the same separation requirements as medical marijuana facilities and testing facilities. He gave a general overview of possible C-2 and LI zoning areas in the city, including: The Shops at Lake Havasu (mall) area, Chenoweth Drive and Victoria Farms Road, Home Depot area, along Lake Havasu Avenue, across Highway 95, along London Bridge Road, on Mesquite Avenue, along Lake Havasu Avenue, on North McCulloch Boulevard and Jamaica Boulevard, and along Sweetwater Avenue. He added that this does not necessarily mean it would be an allowed use in any or all of the zoning districts as it must also meet the requirements of separation. Mr. Morris reviewed the location of the two existing medical marijuana facilities in Lake Havasu City on Lake Havasu Avenue and Industrial Boulevard. Mr. Morris said the Planning and Zoning Commission initially made a motion to postpone this item until the Governor signed the Act. He explained that by delaying the item the lack of clear regulation in the City Code leaves staff with less guidance as to where marijuana establishments are acceptable throughout the community and is less than ideal as the City should have some framework in place. He said the motion to postpone failed and a second motion to adopt as submitted to the Council was approved 5 to 1. Mayor Sheehy said the voters passed this Act and it is the City’s duty to protect the integrity of the neighborhoods through zoning. He said the medical marijuana process, which was a lengthy process, has worked for the last several years and added that he personally anticipates the State Legislature to pass additional bills in future years that will change the makeup of this bill. He said what the City is adopting today is the basic start of what this will look like with possible changes in the future. Mayor Sheehy said it is his understanding that a proprietor of recreational marijuana or landholder that falls outside Lake Havasu City Page 14 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 some of these guidelines could go through a Planned Development (PD) process for approval, to which Mr. Morris said yes an applicant could go through the PD process to ask for exceptions from the underlying zoning districts. Councilmember Campbell said she disagrees with putting retail in light industrial zoning that does not accommodate high retail traffic. She said the voters have spoken and the Council should consider allowing recreational marijuana to function as the retail business they are. She spoke of the dangers of putting retail in an area zoned light industrial, including semi-truck traffic and the lack of light industrial areas currently available to industrial workers. Councilmember Campbell said she believes putting restrictions on licensees that are similar to liquor license laws would be sufficient or, at best, waiting until the state law is completed. She said the City needs the proper data from state licensing boards to consider proper zoning including design reviews and guarantees that retail will not compose restraints on the neighboring industrial uses. Councilmember Campbell said protecting the city is her utmost importance and she has spoken with Congressman (correction in minutes to Representative) Biasiucci who agrees to delay this item until more information becomes available. She added that she would like to investigate with lawmakers confirming that Lake Havasu City enforces the best policies moving forward, and added that by the end of January 2021 the City could see more extreme changes to this industry and to proceed now could cause undue confusion for the future. Mayor Sheehy said there is certainty in this process as it is a 17-page proposition brought forward by the industry in a proposition format. He said the Legislature in the future and subsequent legislative sessions can bring forward legislation that may change; however, there is certainty is in this process and what is allowed. He said this gives certainty to current operators and the recreational marijuana community on what the guidelines and boundaries within Lake Havasu City are going to be so that they can start planning as they move forward to apply for licenses. Mayor Sheehy noted that it is critical for the City to make the right decisions at the entry level and then expand based on where the market goes. He added that there are 27 licenses in Arizona that will be distributed throughout the state; therefore, the chance of Lake Havasu City having a widespread is limited. Councilmember Dolan said he believes this is the safest bet if the City cannot be more restrictive than what is currently in place. He said this gives the City the opportunity to make changes in the future as things become clearer and change. Vice Mayor Coke said postponing a decision on this item tonight puts staff in a bad place for incoming applications and zoning decisions. She said she has not heard of any concerns or problems within the community with the existing facilities and feels the Council needs to make a decision and not postpone this item. Lake Havasu City Page 15 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Councilmember Campbell said she has personally experienced issues with heavy equipment running into patrons in these areas. She said retail is not designed to be in light industrial areas and knows several business owners who are looking for light industrial areas which are already very limited. She said she is not concerned about the commercial areas, but the light industrial areas are already congested and cumbersome. She requested a motion to table for an additional month to look at this in more detail and possibly look at adding that the use not have constraints on the neighboring zoning uses. Mayor Sheehy asked Councilmember Campbell for clarification on adding that the use not have constraints on the neighboring uses, to which Councilmember Campbell clarified that it could include no nuisance or problems with the current zoning of light industrial. Councilmember Lane said he feels this is a good starting point and gives staff direction. He said if an applicant is unable to find a location in the proper zoning they have the ability to go through the PD process which gives the Council the opportunity to review the use and zoning and gives the surrounding neighbors an opportunity to weigh in as well. Councilmember Moses said the City does not know what problems may arise in the future therefore he feels it is important to have a plan in place and adjust accordingly if needed. He said he does not see a reason to postpone this item. Mayor Sheehy opened the public hearing. Mr. Larry Broyles addressed the Council and said he is an entrepreneur and has been in the cannabis industry for 35 years and vertical operator in multiple sectors involving processing, retail, and cultivation. He said he is moving from Colorado to Lake Havasu City to continue his business which will continue to employ people and provide access to medicine. Ms. Christine Simmons, citizen, said she does not believe the proposition overwhelming passed in Mohave County like it did in Maricopa County which is a perfect example of how Mohave County is being overrun and not represented in votes. She said she would like to see Lake Havasu City form a new county with its own representation. Mr. Kyle Henninger addressed the Council and said he is the chief science officer for Mr. Larry Broyles and has lived in Colorado and been in this business for the past seven years involved with construction, retail, franchising and consulting. Mr. Henninger addressed the security, cleanliness, and licensing requirements of the businesses in light industrial areas. He said businesses are ready to come to Lake Havasu City and added that he has spoken to economic development commissions across Colorado who will tell you that they do bring in safe revenue and are a litigable, taxable business that provides jobs in a safe way. Lake Havasu City Page 16 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 He said he agrees with these businesses being in light industrial areas as there are guidelines and distance requirements in place that they must adhere to for health and safety. He said they are compliant and transparent in the community and comply with the licensing guidelines. Mr. Henninger said he believes retain can be appropriate in the right situation but it needs to be workable on both sides to provide safety and access. Councilmember Campbell asked if Mr. Henninger recommends having light industrial with retail business connected, to which Mr. Henninger replied that it would be viable in the right situation on both sides. Councilmember Campbell said her understanding is that rent in the light industrial areas is substantially cheaper than retail areas which is one of the reasons these types of industries are excited to be in light industrial areas because they can save money in overhead. Mr. Henninger said unfortunately in this environment and economic situation there will be massive opportunities as many businesses have gone dark and he thinks people will see retail and light industrial space immediately balanced. Councilmember Campbell said she is concerned about moving forward with this now and not having any light industrial areas available in the future. Mr. Broyles said their intention is to bring business that is already working to Lake Havasu City. He said they spent seven months before finally purchasing a building as there were only two spaces available. He said the problem was finding a space that can accommodate the cultivation process and manufacturing from start to finish which is something that they are looking to bring from their business platform. Dr. Jack Dunn, citizen, addressed the Council and requested clarification regarding the residential setback and distance requirements from a spirituous liquor license. He asked if that includes all licenses or just specific licenses. Mr. Morris said the separation from the residential zoning is 500-feet and clarified that the distance requirement from a spirituous liquor license is for all licenses. Dr. Dunn asked if a state park would fall into the distance requirements from a “public park,” to which Mr. Morris replied that a public park is any park that is open to the public and would include a state park. Dr. Dunn asked if the distance requirement is from the entrance of the park to the entrance of the business, to which Mr. Morris said distance separation requirements are outlined in the City Code and are measured from property boundary to property boundary. Mr. Mitchell, citizen, addressed the Council and asked who vets any potential dangers Lake Havasu City Page 17 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 with chemicals that are used and what kinds of locations would be available if there were dangers. Mayor Sheehy said the proposition outlines that the Arizona Department of Health Services is responsible for licensing and monitoring the types of impacts that licensees might have. He added that the regulations are currently being drafted and will be available in January 2021. Mr. Henninger stated that they have to comply with the same building and fire codes as any other business. There being no further comments, Mayor Sheehy closed the public hearing. He noted that no written public comments were received. Councilmember Moses asked if there is a limit on the number of licenses provided to Mohave County or Lake Havasu City specifically, to which Ms. Garry replied not specifically. She said the Act includes only the global restriction that it has to tie with the registered pharmacies in the state. Councilmember Moses asked if an individual could move a license to Lake Havasu City, to which Ms. Garry said it would be based on the proposition or the State statutes as they exist now, and added that the City is not sure of the rules or if there will be anything additional as to the partitioning of the licenses. Councilmember Moses asked if an individual could operate multiple storefronts under one license, to which Ms. Garry replied that the City has not seen the rules yet; however, under the Act, an individual can have a dual license to operate a medical marijuana dispensary and marijuana establishment under one storefront. She said at this time an individual must have a license for each location. Councilmember Dolan moved to adopt Ordinance No. 20-1247 amending Lake Havasu City Code Title 14, Zoning, to include land use regulations for recreational marijuana, seconded by Vice Mayor Lane, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Lane, Councilmember Coke, Councilmember Dolan and Councilmember Moses Nay: 1 - Councilmember Campbell Absent: 1 - Councilmember Lin 10. CURRENT EVENTS There were no council committee reports. 11. FUTURE MEETINGS Lake Havasu City Page 18 Printed on 1/13/2021 City Council Minutes - Final December 8, 2020 Tuesday, January 12, 2021 @ 6:00 p.m. – Regular Meeting Tuesday, January 26, 2021 @ 6:00 p.m. – Regular Meeting 12. FUTURE DISCUSSION ITEMS Councilmember Campbell requested a future discussion item to consider proclaiming Lake Havasu City a constitutional sanctuary city. The request failed for lack of a second. 13. ADJOURN Upon motion by Vice Mayor Lane and seconded, the meeting adjourned at 8:43 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 8th day of December, 2020. 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 19 Printed on 1/13/2021