City Council

Mayor Cal Sheehy Lake Havasu City Vice Mayor Jeni Coke Police Facility Councilmember Nancy 2360 McCulloch Blvd North Campbell Lake Havasu City, Arizona Councilmember Jim Dolan 86403 Councilmember David Lane www.lhcaz.gov Councilmember Michele Lin Councilmember Cameron Moses City Council Regular Meeting Minutes - Final Tuesday, April 27, 2021 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: Pastor Ryan Speakman, Living Word Family Church Pastor Susie Matyja with Living Word Family Church gave the invocation. 3. PLEDGE OF ALLEGIANCE: Havasu Silent Witness Members from Havasu Silent Witness led in the Pledge of Allegiance. 4. ROLL CALL Present: 7- Mayor Cal Sheehy, Vice Mayor Jeni Coke, Councilmember Nancy Campbell, Councilmember Jim Dolan, Councilmember David Lane, Councilmember Michele Lin and Councilmember Cameron Moses 5. CALL TO THE PUBLIC City Clerk Kelly Williams said one written public comment was received and read the comment into the record as follows: “I am ashamed of all of you for not doing something about the “f**k Biden” flags that are displayed around town. Would you allow me to come in to a meeting and start throwing the word “f**k”around? What would happen to a child if they used that word in school? What has happened to this city?! Is it that you don’t want to take away the rights of these people to fly the flag? What about my rights? Aside from the offensive words, the meaning makes a joke of our democracy. Joe Biden was elected by the people of the United States. Whether people like it or not, he is our president. If you don’t like it, cast your vote again in 2024, but please don’t disrespect our democracy. Every one of you Lake Havasu City Page 1 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 was elected by the people of our city. Many citizens may not agree with the results; even having strong feelings about those results. Would you stand for me displaying a “f**k Campbell” flag? It will be interesting to see if this is read verbatim at the council meeting or if the offensive language will be bleeped out. If it is, you have proved my point and should be ashamed of yourselves for not doing something to preserve plain decency in our city. If it is read, then shame on me for thinking this was a decent city to live in. (Submitted by) Kris Ebert.” 6. CONSENT AGENDA 6.1 ID 21-2793 Approve the March 31, 2021, City Council Work Session and April 13, 2021, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 21-2771 Adopt Resolution No. 21-3496 Approving an Intergovernmental Agreement with Desert Hills Fire District for Self-Contained Breathing Apparatus Services (Chief Pilafas) 6.3 ID 21-2791 Adopt Resolution No. 21-3499 Approving and Authorizing the City Manager to Execute the First Amendment to the Environmental Access Agreement with the Arizona Department of Environmental Quality to Add Additional Monitoring Wells (Kelly Garry) 6.4 ID 21-2784 Approval of the Amended Final Subdivision Plat for Tract 2401, The Ridges at Havasu Riviera, Amending Lots 42-44, Lots 55-59, and Lots 64-65 (Stuart Schmeling) 6.5 ID 21-2788 Approval of a Final Subdivision Plat for Tract 2386, a 15.92-Acre Portion of the Arroyos Subdivision, Phase II, of the Havasu Foothills Estates Development to Include 42 Residential Lots, Parcel A, and Public Right-of-Way (Luke Morris) 6.6 ID 21-2777 Approve Purchase of New Server Infrastructure and Disaster Recovery Upgrade from Dell Financial Service (Jonathan Baskette) 6.7 ID 21-2794 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, May 11, 2021 (Kelly Williams) Vice Mayor Coke moved to approve the Consent Agenda as presented, seconded by Councilmember Dolan, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 7. CORRESPONDENCE, COMMUNICATIONS, PETITIONS, ANNOUNCEMENTS, CITY MANAGER REPORT Lake Havasu City Page 2 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 7.1 ID 21-2785 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 added that applications are available at City Hall and on the City’s website at www.lhcaz.gov. 7.2 ID 21-2792 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Recognized Lake Havasu City Fire Chief Peter Pilafas for earning the Executive Fire Officer certification from the National Fire Academy Program. • Reported on various proclamations and ribbon cutting ceremonies. • The 2018 International Building/Fire Codes with local amendments are available for viewing and public comment on the City’s website at www.lhcaz.gov • COVID-19 update. 8. PUBLIC HEARINGS 8.1 ID 21-2761 Adopt Resolution No. 21-3497 for a Minor General Plan Amendment Changing the Future Land Use Map Designation for 700 London Bridge Road, Located at the Southeast Corner of London Bridge Road and Industrial Boulevard, from Resort-Related to Commercial Mixed-Use (Luke Morris) City Planner Luke Morris advised that this item and the next are companion items for a General Plan Amendment to amend the General Plan Land Use Map. The subject property is 12-acres located on the corner of London Bridge Road and Industrial Boulevard and was recently purchased at auction from the Arizona State Land Department. Mr. Morris reviewed the property’s topography and proximity to Arizona State Park/Boat Launch. He said the current General Plan land use designation is Resort-Related and the property owner is requesting to rezone to MU-G (Commercial Mixed-Use) which would allow for residential and commercial components. Mr. Morris outlined the following in his presentation: • Companion item of the Rezone request • The current Resort Related General Plan classification is intended to support the resort industry. • Primary Uses include: o Retail o Service o Commercial o Boat rentals/sales/repair Lake Havasu City Page 3 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 o Hotels, motels o Restaurants • This land use designation only allows commercial uses and prohibits RV and manufactured home parks. • Does not allow residential • The requested Commercial Mixed-Use General Plan designation allows primary uses such as: o Retail shopping and services o Health facilities o Nightclubs, studios o Artisan shops o Grocery/retail stores o Restaurants o Banks o Medical office/hospital/clinics o Veterinary clinics o Parking facilities o Storage facilities o Personal services • Secondary uses include high density residential and accessory structures. • The existing and proposed General Plan designations are about the same, but the proposed Commercial Mixed-Use allows residential uses. Mayor Sheehy said in reviewing the future land use map, it appears that the Kings View which is a residential complex, is in a Resort-Related designation, to which Mr. Morris said Kings View may have been developed initially as short-term or could have been grandfathered in prior to when the General Plan was developed or changed. City Attorney Kelly Garry agreed with Mr. Morris and added that it may be a legal non-conforming use and existed prior to the designation. Mayor Sheehy opened the public hearing. Mr. Mychal Gorden, Desert Land Group, addressed the Council regarding the General Plan Amendment. He said the property owner is starting the planning process to put together a mixed-use project for this location. He explained that they know the high profile nature of this location between traffic of the State Park and boating activity and are looking at a mix of uses, from a sea-store site, hotel, restaurant, and/or residential potentially mixed with a residential/industrial-flex storage component, on the site that supports the surrounding properties Lake Havasu City Page 4 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 Councilmember Lane said the property has remained vacant for a long time and questioned the intent to amend the General Plan land use from industrial/commercial to residential, to which Mr. Gorden replied that the intent is not to turn the entire property into a residential community but to allow for a residential component within the mixed-use project. Councilmember Campbell said state land is expensive and requires creativity from developers to be successful. She asked if the property owner is requesting the Council adjust the zoning so they can begin the planning, process and paperwork, to which Mr. Gorden replied yes, adding that they were involved with some of the consulting to look at highest, best use and feasibility. Mr. Gorden said market factors will dictate what is developed on the property, but what they are looking to do is develop a mixed-use project that has a hotel component, potentially a sea-store component, restaurant component and then some mix of retail/residential. He said they are looking to have the flexibility of the residential component to have the ability to incorporate it into the overall plan. Councilmember Lin asked if the amendment affects the height limitations, to which Mr. Morris replied no and explained that the specific entitlements (including height) falls within the zoning. Councilmember Campbell asked what the height limitations are under the current zoning, to which Mr. Morris said the current zoning A-P (Agriculture/Preservation District) allows up to 40-feet. Mr. Gorden said the A-P District allows for more rural improvements and does not allow for many uses which is why they are going in a different path to develop the property. He said the compansion item is a request to rezone to MU-G within the standards (25-feet maximum height) which is consistent with the other C-2 and industrial surrounding properties. Councilmember Dolan said he supports the zoning change and the option for the owner to include a residential component on the property, but was concerned with splitting the property and potential for storage units to be built. He said the views on the property are great and need to be considered when determining the highest and best use. Mr. Gorden said he understands the Council’s concern regarding storage units and noted that without a development plan in place there is no guarantee but said storage units would not really lend to highest and best use of the property. He spoke on some possible viable and best uses of the property based on location and current market. Mr. Gorden added they received public feedback from three individuals with no negative comments. Lake Havasu City Page 5 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 There being no further comments, Mayor Sheehy closed the public hearing and added that no written public comments were received. Councilmember Campbell moved to adopt Resolution No. 21-3497 changing the Future Land Use Map Designation for 700 London Bridge Road, located at the southeast corner of London Bridge Road and Industrial Boulevard, from Resort-Related to Commercial Mixed-Use, seconded by Councilmember Dolan, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.2 ID 21-2762 Adopt Ordinance No. 21-1253 Amending the Zoning Classification and District Boundary for 700 London Bridge Road, Located at the Southeast Corner of London Bridge Road and Industrial Boulevard, from Agriculture/ Preservation District (A-P) to Mixed Use-General District (MU-G) (Luke Morris) Mr. Morris advised that the subject property (as mentioned in the previous item) is 12-acres located on the corner of Industrial Boulevard and London Bridge Road and is currently zoned A-P (Agriculture/Preservation District), adding that the surrounding properties are zoned C-2 (General Commercial District), C-2/PD (General Commercial/Planned Development District), and A-P. Mr. Morris outlined the following in his presentation: • Companion item of the General Plan Amendment request • The owner/applicant has discussed some development plans with staff. They have included a residential component. • The owner intends to develop the property within the MU-G District standards. • If the Council approved the General Plan Amendment change to Commercial-Mixed Use, the proposed zoning is appropriate. • If rezoned, all uses permitted in the MU-G district may be allowed. • Any future development is required to meet the MU-G District development standard and go through design review as applicable. • The MU-G district allows a range of commercial uses and also allows multi-family uses, such as apartments and condominiums. • Planning & Zoning Commission recommended approval by a vote of 7-0. Mayor Sheehy requested clarification on the height limitation within MU-G, to which Mr. Morris replied that it would allow up to 30-feet, which is a decrease of 10-feet from A-P. Ms. Garry said the maximum height for both A-P and MU-G is 30-feet*. Lake Havasu City Page 6 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. *Ms. Garry corrected for the record that the maximum height for A-P is 40-feet and MU-G is 30-feet. Councilmember Dolan moved to adopt Ordinance No. 21-1253 approving amending the zoning classification and district boundary for 700 London Bridge Road from Agriculture/Preservation District to Mixed Use-General District, seconded by Councilmember Campbell, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.3 ID 21-2763 Adopt Ordinance No. 21-1254 Amending the Zoning Classification and District Boundary of PD 07-00200007 (Havasu Auto Complex), Removing and Rezoning Tract 2395, Lots 4 and 5, from General Commercial/Planned Development District (C-2/PD) to General Commercial District (C-2) and Removing and Rezoning Tract 2395, Lots 7, 8, 9, and 10, from C-2/PD to a New C-2/PD, Prohibiting Storage Units as a Permitted Use (Luke Morris) Mr. Morris advised that the subject properties are located at the intersection of London Bridge Road and Showplace Avenue, with four properties fronting Highway 95 and two properties fronting Showplace Avenue. He said all six properties are currently zoned C-2/PD (General Commercial/Planned Development District) under a Havasu Auto Complex General Development Plan (PD) that was adopted in 2007 creating 12 lots for car dealerships. Mr. Morris reviewed the lot size, originally anticipated use, and current or proposed use for Lots 1 through 12. He said the applicant is requesting to remove and rezone Lots 4 and 5 from C-2/PD to C-2 (General Commercial District), and remove and rezone Lots 7, 8, 9, and 10 from C-2/PD to a new C-2/PD to allow any use in C-2 except storage units. He said the previous PD allowed a maximum building height of 36-feet; however, if removed from the PD they revert to C-2 standard, which allows for a maximum building height of 25-feet. Mr. Morris added that the Planning and Zoning Commission approved this item 6 to 1. Councilmember Lane said several years ago when the council approved Lots 6, 11, and 12 to allow storage units there was discussion about the frontage and creating a buffer to Highway 95. He asked if “storage units” is being removed as a permitted use for Lots 7, 8, 9 and 10 due to the buffer requirement, to which Mr. Gorden replied yes. He said the owner’s intent is to remove and rezone these lots to allow more flexibility of uses and Lake Havasu City Page 7 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 noted that they understand the Council’s concern regarding storage units along the frontage of Highway 95, which is the reason for the rezone to C-2/PD with a restriction on storage. Councilmember Lane asked if the owners would be willing to place the same restrictions on Lots 4 and 5, to which Mr. Gorden replied that at this time that is not their request. Councilmember Lane was concerned that storage units on Lots 4 and 5 could still be seen from Highway 95. Mr. Gorden said there was support at the Planning and Zoning Commission for possible storage units based on market demand and what has been developed on the other three parcels; however, the Commission’s concern was what does it look like and what can be done to create a better buffer of enhanced elevation and landscaping. He said he believes the owner would be okay with conditions of that nature if the lots were to be developed as storage units; however, he did not believe they could do that at this time based on how this item has been proposed. Mayor Sheehy asked if the owners had any proposed ideas for Lots 7, 8, 9, and 10, to which Mr. Gorden said the lots are currently being marketed as commercial property and if rezoned any of the permitted uses under C-2 (such as restaurants, hotels, car washes) would be allowed. Mr. Gorden added that ownership does not have a specific interest in what is developed other than understanding the sensitivity to the storage being along the frontage of Highway 95. Mayor Sheehy asked what the total acreage is for Lots 4 and 5, to which Mr. Morris said approximately 6-acres each. Mayor Sheehy asked if the owners would be interested in a lot split for the front three acres to mirror Lots 7, 8, 9, and 10 to create a buffer and the back acres could be zoned as requested. He said when the council at the time rezoned Lots 6, 11, and 12 they were not in favor of storage units, and said the reason he feels it passed was because of buffering and no additional storage units were proposed to be built at this location. Mayor Sheehy said this request is not only for a rezone but it also means that the city is losing the potential for large sales tax dollars on vehicle sales. He said he understands that storage units are in high demand but cannot support storage units at this location without some kind of buffer. Councilmember Dolan asked if the Council could include a stipulation to Lots 4 and 5 to prohibit storage units, to which Ms. Garry replied said the Council could not place a stipulation with respect to the rezone of Lots 4 and 5 because they are asking a rezone to C-2 without a planned development. She said by doing that the Council would be placing a condition on something that is being zoned to C-2 but would be impossible for the City to track or look that up; therefore, the best method to place a condition or restrict a use Lake Havasu City Page 8 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 would be through the planned development process. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. Mr. Gorden said if there is concern from the Council and the item is going to fail, he would prefer to go back and present the lots with a new PD and work on any restrictions. He said Lots 4 and 5 total 12-acres, which is a large piece; therefore, it does warrant the ability to break out into different pieces either by separate parcels buffering Highway 95 or a combination with architectural and landscape buffer elements. He said there are a number of things that they can look at doing depending on how the Council votes. Vice Mayor Coke spoke concerning the perception of storage units along Highway 95. Item 8.3 failed for lack of a motion. 8.4 ID 21-2790 Approve Cooperative Purchasing Agreement Using City of Mesa, Arizona Cooperative Contract with JPMorgan Chase Bank, N.A., for Banking Services from May 1, 2021 through December 31, 2024 (Jill Olsen) Administrative Services Director Jill Olsen advised that this item is requesting Council approval of a cooperative purchase agreement utilizing the City of Mesa Arizona Cooperative Contract with JPMorgan Chase Bank for banking services. She said the new agreement would continue banking services with JPMorgan Chase Bank for a total of three years and eight months at a total cost of $240,000. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. Councilmember Coke moved to approve the Cooperative Purchasing Agreement using the City of Mesa, Arizona Cooperative Contract with JPMorgan Chase Bank, N.A., for banking services, seconded by Councilmember Moses, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Coke, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses Nay: 1 - Councilmember Campbell 9. CURRENT EVENTS There were no Council committee reports. 10. FUTURE MEETINGS Tuesday, May 11, 2021 @ 6:00 p.m. – Regular Meeting Lake Havasu City Page 9 Printed on 5/12/2021 City Council Minutes - Final April 27, 2021 Thursday, May 13, 2021 @ 9:00 a.m. – Budget/CIP Work Session Tuesday, May 25, 2021 @ 6:00 p.m. – Regular Meeting 11. FUTURE DISCUSSION ITEMS There were no requests from Council for future discussion items. 12. ADJOURN Upon motion by Councilmember Lane and seconded, the meeting adjourned at 6:59 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 27th day of April, 2021. 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 10 Printed on 5/12/2021