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, May 25, 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 could 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: Dr. David Bybee, Community Presbyterian Church Dr. David Bybee, Community Presbyterian Church, gave the invocation. 3. PLEDGE OF ALLEGIANCE: AmeriCorps Seniors Volunteer Program, a part of Northern Arizona University’s Center for Service & Volunteerism Members from the AmeriCorps Seniors Volunteer Program, a part of Northern Arizona University’s Center for Service & Volunteerism, 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 Ms. Donna McCoy, citizen, addressed the Council concerning the City Manager’s contract renewal and 28 percent pay increase, and asked City leaders to consider allocating surplus funds to City infrastructure needs and rainy day fund. Mr. Bob Waldorf, citizen, addressed the Council regarding his interest in obtaining a special event permit for an upcoming event at Rotary Park to generate funds for a girls and boys club in Lake Havasu City. Mr. Waldorf also requested that the Council disapprove the marijuana establishment at the proposed location due to the surrounding liquor licenses and rules that the Council previous adopted. Lake Havasu City Page 1 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 6. CONSENT AGENDA 6.1 ID 21-2833 Approve the May 11, 2021, City Council Regular Meeting Minutes (Kelly Williams) 6.2 ID 21-2818 Adopt Resolution No. 21-3502 Approving an Intergovernmental Agreement with the Mohave County Flood Control District for Flood Control Purposes (Dan Sloan) 6.3 ID 21-2827 Adopt Resolution No. 21-3503 Accepting Dedication of a 10-foot by Approximately 75-foot Public Utility and Drainage Easement for 3210 & 3220 Chanute Drive, Tract 2274, Block 9, Lots 11 & 12 (Luke Morris) 6.4 ID 21-2825 Approval of the Final Plat for Esperanza II Condos, 470 N. Lake Havasu Avenue, Tract 2252, Block 3, Lot 6, Creating 12 Residential Condominiums and Covered Parking (Luke Morris) 6.5 ID 21-2826 Approval of the Final Plat for LaNoria Condos, 3448 Oro Grande Boulevard, Tract 2217, Block 7, Lot 2, Creating Nine Residential Condominiums (Luke Morris) 6.6 ID 21-2817 Ratify Amendment No. 1 to the Land Lease Agreement with Steven Greeley, d/b/a KJJJ/KNTR AM Radio, to Renew Lease for the Operation and Maintenance of an Existing Broadcast Tower Located at 900 London Bridge Road (Kelly Garry) 6.7 ID 21-2832 Call for Executive Session Pursuant to A.R.S.§ 38-431.03(A) 5:00 p.m. Tuesday, June 8, 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: 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 7.1 ID 21-2831 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 Havasu City Boards, Committees, and Commissions. She added that applications are available at City Hall on the City’s website at www.lhcaz.gov. Lake Havasu City Page 2 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 7.2 ID 21-2834 City Manager’s Report (Jess Knudson) City Manager Jess Knudson reported on the following: • Reported on various proclamations, awards, and events. • COVID-19 update 8. PUBLIC HEARINGS 8.1 ID 21-2815 Approve Notice of Intent to Implement Fees for Transit Services (Jill Olsen) Administrative Services Director Jill Olsen advised that this item is to notify the public of the City’s intent to implement fees for transit services effective July 1, 2021. She said staff conducted a market study on fees from other cities and towns. Mayor Sheehy reviewed the fares for fixed route, paratransit, and microtransit and the reduced fares for seniors, disabled individuals, Medicare cardholders, students, and youth. 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 Lane moved to approve the Notice of Intent to implement Transit Fees that will be incorporated into the citywide fee schedule on July 1, 2021, in compliance with Lake Havasu City Code Section 3.20.040, 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 21-2816 Approve Professional Services Agreement with Clifton Larson Allen, LLP, for External Auditing Services (Jill Olsen) Ms. Olsen said this item is requesting approval of a five-year agreement with Clifton Larson Allen, LLP, for external auditing services utilizing a cooperative agreement. She said annual auditing is required to meet the standards in public sector and governmental accounting and explained the auditing process and reporting requirements. Mayor Sheehy opened the public hearing. Mr. David Diaz, citizen, addressed the Council and asked if the term of the agreement could be fewer years as five years seemed lengthy, to which Ms. Olsen explained that five years is typical and more cost effective in the government sector due to the time and investment that is required from the auditing firm. Ms. Olsen spoke on the importance of having an auditing firm with experience in governmental accounting, and said there is a Lake Havasu City Page 3 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 clause within the agreement that would allow the City to terminate early if needed. Councilmember Moses asked about the auditing fees for the Municipal Court, to which Ms. Olsen explained that in accordance with State law an audit is required every three years on the court records. Councilmember Moses asked about the technology fee, to which Ms. Olsen said the five percent technology fee is becoming more common in the public sector as a revenue source to maintain the technology requirements. There being no further comments, Mayor Sheehy closed the public hearing and added that no written public comments were received. Councilmember Dolan moved to approve the Professional Services Agreement for external auditing services with Clifton Larson Allen, LLP, for a term of five (5) years, seconded by Councilmember Moses, 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 21-2797 Introduce Ordinance No. 21-1255 Amending City Code Chapter 12.08, Building Codes, to Adopt Designated Updated Editions of Published Building Codes, Declaring as a Public Record the Local Amendments to the Published Building Codes, and Adopting the Local Amendments by Reference; Including the 2018 International Building Code, 2018 International Residential Code, 2018 International Mechanical Code; 2018 International Fuel Gas Code, 2018 International Plumbing Code, 2017 National Electrical Code, 2018 International Property Maintenance Code, 2018 International Existing Building Code, and 2018 International Building Code Implementation Standards (Jeff Thuneman) Development Services Department/Building Official Jeff Thuneman said this item is the introduction of the 2018 Building Code adoption and amendments established to protect the community and create minimum standards for public health. He said the code amendments are needed to be uniform with other cities and the building industry. Mr. Thuneman outlined the following in his presentation: Building Codes = Safety • Building Codes are established to protect our community • Establish minimum standards for safety and public health • New codes reflect safer code practices and new technology Lake Havasu City Page 4 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 • Code amendments are needed to address unique local conditions and to deal with construction problems based upon City staff’s expertise and experience Background • International Code Council (ICC) publishes new building codes on a 3-year cycle • The City is currently operating under the 2012 International Building Codes (IBC) which were adopted in 2015 • Standard practice for cities & towns is to adopt current building codes on a 6-year cycle Proposed New Technical Codes with Amendments • 2018 IBC (Building) • 2018 IMC (Mechanical) • 2017 National Electrical Code • 2018 IEBC (Existing Building) • 2018 IFGC (Fuel Gas) • 2018 IPC (Plumbing) • 2018 IPMC (Property Maintenance) • 2018 IRC (Residential) • 2018 IFC (Fire) New Codes Keep Lake Havasu Safe • Ensures construction in Lake Havasu City is safe and utilizes updated technology • The Tri-City area, Phoenix Metropolitan area, and the Arizona Department of housing have already adopted the 2018 code • The Insurance Services Office (ISO) recommends that we adopt the most current building codes Code Adoption Process • The City is proposing to adopt the 2018 IBC with local amendments o Detailed review of new IBC by staff o Developed Lake Havasu City Amendments o Posted amendments on www.lhcaz.gov for community input o Email notification sent to all builders, architects, engineers, and draftsman requesting input on all local amendments o No comments received back on the local amendments o No major changes that will adversely affect the development community Implementation Process • The 2012 Codes will be allowed for projects submitted up to 90 days from the effective date Lake Havasu City Page 5 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 • Standard plans will be given 1-year from the effective date to be updated to new code • Effective and continued communication with development community to ensure seamless transition • Building Division staff will be properly trained to support community and transition • Staff recommends adoption at the next Council meeting that will effective September 1, 2021 Councilmember Dolan asked if these amendments could be changed in the future, to which Mr. Thuneman replied yes. Councilmember Moses asked if 2018 is the most up-to-date edition, to which Mr. Thuneman explained that the 2021 edition is currently available since they are updated on a three-year cycle; however, it is tradition for the City to update the building code every six years. He said the City is looking to align with the 2018 editions, which were adopted by the surrounding and metropolitan cities, to create more continuity to the region. There was discussion regarding the ISO ratings. Mr. Thuneman explained that the ISO rating requires cities to have an adopted code that is within eight years of the date of the survey. Mayor Sheehy opened the public hearing. Mr. Gregory Logan, citizen, addressed the Council and asked if the 2018 International Building Codes are proprietary, to which Mr. Thuneman said the codes are available online at no cost. There being no further comments, Mayor Sheehy closed the public hearing and added that no written public comments were received. Mayor Sheehy thanked Mr. Thuneman for reaching out to the building community and bringing continuity to the region. Councilmember Moses moved to introduce Ordinance No. 21-1255 amending City Code Chapter 12.08, Building Codes, to adopt designated updated editions of published building codes, declaring as a public record the local amendments to the published building codes, and adopting the local amendments by reference, seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.4 ID 21-2802 Introduce Ordinance No. 21-1256 Amending Lake Havasu City Code Lake Havasu City Page 6 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Chapter 12.12, International Fire Code, to Adopt the 2018 Edition of the International Fire Code, Declaring as a Public Record the Local Amendments to the International Fire Code, and Adopting the Local Amendments by Reference (Scott Hartman) Deputy Fire Chief Scott Hartman said this item is the introduction to the 2018 International Fire Code adoption and amendments and is a companion item to the International Building Codes. He said when moving to a new code staff reviews the changes and how it will affect the community, and stated that there are no changes that will negatively impact existing or new businesses. He said one of the reasons there are no impacts is because the City adopted a fire sprinkler ordinance in 1994 that mandated certain buildings to have fire sprinklers; therefore, some of the changes in the 2018 amendments have already been in place for many years. Mr. Hartman outlined the following changes in the 2018 International Fire Code as follows: • Energy Systems – Chapter 12 o Change Type – Addition o Change Summary: This new chapter has been added to the IFC to address all configurations of energy systems. o Impacts: This chapter provides safety information pertaining to energy generation and battery storage. • Outdoor Assembly Events – 3106 o Change Type: Modification o Change Summary: This section adds requirements specific to outdoor public gatherings and improves the correlation of requirements in the IBC and IFC. o Impacts: This change will be incorporated into the new City special event policy. • Mobile Food Trucks – 319 o Change Type: Addition o Change Summary: A new section has been added to the IFC to specifically address the requirements of mobile food prep vehicles. o Impact: These changes have already been incorporated into existing policy. Mr. Hartman added that there is a change in the code for existing buildings to require fire sprinklers for A-2 occupancies that serve alcohol and seat more than 300 people. He reiterated that because of the 1994 ordinance, existing buildings already have this requirement. Councilmember Dolan was concerned that the changes would affect businesses. He said in years past the abundance of changes created many challenges for business, to which Mr. Hartman said the City does not expect there to be any changes with the new code Lake Havasu City Page 7 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 adoption. Councilmember Moses said historically any time the City has adopted new codes it creates additional expense and burden on the businesses. He asked for more information on the changes for outdoor assembly of events, to which Mr. Hartman explained that the changes address public safety in terms of fire access, fire hydrant clearance, and safe evacuation plans. Mr. Hartman added that there is also a section that addresses “crowd managers,” which requires a minimum number of crowd managers for events up to 1,000 people and then an additional person per 250 people. Councilmember Moses expressed his concerns about the City requiring crowd managers and the burden it puts on special events. Mr. Hartman added that there are opportunities for the City to make changes to better suit our needs, adding that changes to the fire code, unlike the building code, do not affect the City’s ISO rating; however, if the City were to make changes, it would be approving something that is below the minimum standard of the code. There was discussion regarding special event process and future ordinance changes. Councilmember Campbell was concerned that the City would not be able to govern and regulate the number of crowd managers required for large special events. Mr. Hartman said the Council has the option to direct staff to revise the crowd manager requirements. Councilmember Dolan asked if the crowd manager requirements would apply to special events at Lake Havasu State Park, to which Mr. Hartman said the City has an agreement with Arizona State Parks for oversight of special events. There was discussion regarding modifying language in the code to lower the minimum crowd manager requirement. Mayor Sheehy asked if the City is confident that there are no existing buildings prior to 1994 that would be impacted by the 2018 International Fire Code changes, to which Mr. Hartman said to the best of his knowledge there are no existing buildings that would be negatively impacted that meet the maximum occupancy requirements. He said the City has the flexibility to set timelines for compliance to make necessary adjustments if buildings are affected. Mr. Thuneman added that the City also has the ability to set the maximum occupancy load for a building and adjust the layout to lower the occupancy load. There was discussion regarding the importance of safety for all businesses and special events. Lake Havasu City Page 8 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Councilmember Campbell expressed concerns on how the City plans to govern these changes and recommended that the Council adopt the minimums standards. Councilmember Moses suggested staff revise this ordinance with changes as discussed. Mr. Knudson clarified that special events at Lake Havasu State Park do not go through the City’s special event process with exception to tent and fire inspection processes. Mr. Knudson said the direction he is hearing from the Council is for staff to revise the ordinance to provide more clarity on the fire sprinkler impact for businesses and the crowd manager requirement for special events. He reminded the Council that this item an introduction of the ordinance with final adoption at the next meeting. Mayor Sheehy opened the public hearing. Mr. Don Wisdom, citizen, addressed the Council and suggested the City maintain a list of volunteers and/or crowd managers that would be available to organizers of special events. There being no further comments, Mayor Sheehy closed the public hearing and added that no written public comments were received. Councilmember Dolan moved to introduce Ordinance No. 21-1256 amending Lake Havasu City Code Chapter 12.12, International Fire Code, to adopt the 2018 Edition of the International Fire Code, declaring as a public record the local amendments to the published International Fire Code, and adopting the local amendments by reference, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.5 ID 21-2824 Approve City Magistrate Employment Contract with Mitchell Kalauli (Shawn Marie Irula) Human Resources Director Shawn Irula advised that the item before Council is approval of an employment contract with Mitchell Kalauli. She said based upon a favorable evaluation from the City Council, the City wishes to continue the employment with Mitchell Kalauli as City Magistrate. She said the employment contract would commence on June 26, 2021, and continue in effect until June 30, 2023. There was discussion regarding the positional analysis and percentage increases to the Lake Havasu City Page 9 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 employment contracts with the City Magistrate, City Attorney and City Manager. 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 Moses moved to approve the City Magistrate Employment Contract with Mitchell Kalauli, seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.6 ID 21-2823 Approve City Manager Employment Contract with Jess Knudson (Shawn Marie Irula) Ms. Irula advised that the item before Council is approval of an employment contract with Jess Knudson. She said based upon a favorable evaluation from the City Council, the City wishes to continue the employment with Jess Knudson as City Manager. She said the employment contract would commence on June 26, 2021, and continue in effect until June 30, 2023. There was discussion regarding the 28 percent increase to the City Manager’s contract. 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 Moses moved to approve the City Manager Employment Contract with Jess Knudson, seconded by Councilmember Dolan, and carried by the following vote: Aye: 6 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane and Councilmember Moses Nay: 1 - Councilmember Lin 8.7 ID 21-2814 Approve City Attorney Employment Contract with Kelly C. Garry (Shawn Marie Irula) Ms. Irula advised that the item before Council is approval of an employment contract with Kelly Garry. She said based upon a favorable evaluation from the City Council, the City wishes to continue the employment with Kelly Garry as City Attorney. She said the employment contract would commence on June 26, 2021, and continue in effect until June 30, 2023. Lake Havasu City Page 10 Printed on 6/11/2021 City Council Minutes - Final May 25, 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. Vice Mayor Coke moved to approve the City Attorney Employment Contract with Kelly C. Garry, seconded by Councilmember Moses, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.8 ID 21-2807 Adopt Ordinance No. 21-1258 Amending the Zoning Classification and District Boundary for 1035 Acoma Boulevard S. and 2671 Fremont Drive, Tract 2285, Block 1, Lot 2B and Parcel D, from Limited Commercial District (C-1) to General Commercial District (C-2) (Luke Morris) City Planner Luke Morris advised that the subject property is located along Acoma Boulevard South and Freemont Drive. He said the applicant owns both properties (totaling one acre) and is requesting a zoning change from C-1 (Limited Commercial District) to C-2 (General Commercial District). He reviewed the surrounding zoning and said the applicant is requesting to combine the three lots into one lot to extend the gas station. He noted that the Planning & Zoning Commission recommended approval 4 to 1. 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 Dolan asked if staff received any objections from the surrounding properties, to which Mr. Morris said there was concern from a neighboring property owner regarding the impact on the alleyway and the maximum building height allowable under C-2. Mr. Morris said the maximum building height under C-2 is 25-feet and added that buffering would be required through the design review process when developed for appropriate buffering between commercial and residential properties. He noted that C-1 and C-2 zoning have the same buffering requirements. Councilmember Lane moved to adopt Ordinance No. 21-1258 amending the Zoning Classification and District Boundary for 1035 Acoma Boulevard S. and 2671 Fremont Drive, Tract 2285, Block 1, Lot 2B and Parcel D, from Limited Commercial District (C-1) to General Commercial District (C-2), seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.9 ID 21-2806 Adopt Ordinance No. 21-1257 Approving a Planned Development Rezone Lake Havasu City Page 11 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 of 200 London Bridge Road, Tract 2183, Block 6, Lot 1, from Limited Commercial District (C-1) to General Commercial/Planned Development District (C-2/PD), to Allow Exceptions from Code Section 14.03.03.C.17.b.ii.B 3 & 4, Separation of 500 Feet from a Public Park, Playground, or Recreational Facility and an Establishment Having an Arizona Spirituous Liquor License, for a Proposed Marijuana Establishment (Luke Morris) Mr. Morris advised that the subject property is approximately 6,800 square feet located on the northeast corner of Paseo Del Sol and London Bridge Road. He reviewed the surrounding properties and zoning and said there is a City-owned shared parking lot to the east, City-owned swap meet parking lot to the south, and City-owned parking lot to the west (abutting to the Lake Havasu State Park). The applicant is requesting to rezone the property from C-1 to C-2 with a Planned Development (PD) to allow exceptions from the Development Code regarding separation requirements from a marijuana establishment. He said the marijuana establishment development standards require separation from certain types of uses, including: 1,000 feet from another marijuana establishment, marijuana testing facility, medical marijuana business, or school or day care center; and 500 feet from a religious facility, boundary of a residential zoning district or residential use, public park, playground, recreational facility, or an establishment having an Arizona spirituous liquor license. Mr. Morris said the applicant is requesting exceptions from: 1) a public park, playground or recreation facility, and 2) an establishment having an Arizona spirituous liquor license. Mr. Morris reviewed the exception from the Lake Havasu State Park, explaining that this park/recreation facility is located about 300 feet from the property to the west, access to the park is limited to special events, and a fence surrounds the boundary of the State park in this area. He reviewed the exception from the liquor licenses, explaining that licenses are issued for three properties within 500 feet of the subject property. The licenses include: 1) Knights of Columbus at 186 London Bridge Road (approximately 150 feet south), 2) Hampton Inn at 245 London Bridge Road (approximately 275 feet northwest), and 3) American Legion at 181 Paseo Del Sol (approximately 400 feet southwest). There are no bars or restaurants open to the general public with liquor licenses within 500 feet of the property. Mr. Morris reviewed the development plan submitted as part of the PD request and site plan (conceptual drawing) which included a 2-story building with marijuana business on the ground floor, commercial uses on the second floor, and drive-thru entering on the City-owned parking lot and exiting on Paseo Del Sol. He said if the request is approved, the property is required to substantially match the development plan and is allowed all uses within the C-2 zoning district, but would be limited to the development plan approved as Lake Havasu City Page 12 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 part of the request. He said any significant changes to the approved development plan would require the item to come back to the City Council for a PD amendment. Mr. Morris added that this item is before the Council without a recommendation of approval (tie vote 3 to 3) from the Planning & Zoning Commission. Mr. Mychal Gorden, Desert Land Group, addressed the Council and said he is representing the owner of the property. He said to address some concerns this item is regarding a rezone and whether the location is suitable for this use, and is not coming with a request or approval of a third license for marijuana in Lake Havasu City. He said if approved, this site would have the ability to house a location and provide an option for one of the existing facilities to relocate, if desired, or the ability to house other C-2 uses. He said the owners have put a lot of time and effort studying the development code and separation requirements, which resulted in few viable locations that are suitable to house the public in a retail setting with good circulation and little to no restrictions or exceptions. He reviewed the exceptions, explaining that special events at the State park cater mainly to adults and do not have playgrounds or uses that children would frequent. He said there are three liquor licenses in the area that are not public-use liquor licenses, two being private clubs with limited use, and one hotel license that is servicing the patrons of the hotel. He said the current locations of the two existing facilities are not ideal in terms of circulation, parking, and accidents, which is one of the motivating factors of ownership to provide an opportunity for a better and more viable solution long-term for one of the existing licenses. Mr. Gorden reviewed the site plan, drive-thru, and City-owned parking lot and said he believes the exemptions are justifiable in this location. There was discussion regarding the recreational marijuana proposition approved by the voters and process that the Council adopted in 2020 requiring applicants to go through a planned development and public process. Councilmember Campbell addressed her concerns regarding the complicated nature of this rezone and the unacceptable communication and breakdown from City staff and Council that ended with a tie vote at Planning & Zoning Commission. She addressed her concerns with retail in light industrial with traffic, crime, transient issues, and parking. She said she believes the Council needs to have discussions with the public and come together to put strict policies in place. She said if the restrictions hold to allow two applicants in Lake Havasu City it takes mindful thought, projection and planning and spoke on the social equity groups, at the bottom of the proposition, which allows the groups to increase by ten percent at any time. Mayor Sheehy said the voters approved the proposition and the number of licenses are allocated through the Arizona Department of Public Health. He said he disagrees with Lake Havasu City Page 13 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Councilmember Campbell’s comment that the City did a disservice through this process. He said the Council set forth to be as restrictive as possible to force applicants to go through a public process. He said he believes what the Council adopted was in good faith and in the best interests of the citizens. Mayor Sheehy reminded the Council that this is a zoning matter, not to debate the merits of marijuana or use. Councilmember Lin questioned how long the applicant has lived in Lake Havasu City, to which the applicant (from the audience) replied 21 years. Councilmember Lin said she believes everyone has a right to establish a business and make money in Lake Havasu, and added that she has not received any complaints and only two individuals attended the public meeting. Councilmember Dolan said the biggest concern from businesses in this area is parking. Mr. Morris said the City-owned lot is parking in common and meets the minimum standards for the zoning ordinance and exceeds the minimum standards for a drive-thru. There was discussion regarding the ownership and maintenance of the City-owned parking lots and the London Bridge Plaza (Improvement District #2) improvements. Councilmember Campbell said her concerns are with the drive-thru and retail businesses being in light-industrial areas. Councilmember Lin asked if the applicant would be moving to this new location, to which Mr. Gorden explained that the applicant no longer owns the other location or an existing license. He said the applicant is looking at an opportunity to provide a better solution long-term for one of the two existing licenses. Councilmember Lane said he is against the rezone because he believes it is the wrong location for this type of business due to the close proximity to the park, swap-meet parking lot, and Hampton Inn. He said all of these areas generate events that bring families, tourists, and pedestrians. He said the proposed property is right in the middle of a tourist area and this is not a business geared towards tourists. Mr. Gorden addressed Councilmember Lane’s comments regarding parking and traffic in this area, and said he does not feel it is right to make a decision based on special events near this business. Mr. Gorden said he believes the city wants to see this area develop with more retail and commercial businesses. There was further discussion regarding the application and public process. Lake Havasu City Page 14 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Mayor Sheehy opened the public hearing. Mr. Timothy LaSota addressed the Council and said he was appearing on behalf of Farm Fresh Dispensary (Farm Fresh) in opposition to this item. He spoke on the limited options and locations available when Farm Fresh opened in Lake Havasu City based on the requirements and zoning map. He said the Hampton Inn has a current liquor license that he believes is open to the public and addressed his concerns regarding the proposed drive-thru and parking being on a City-owned parking lot paid by taxpayers. Mr. LaSota said the benefits afforded to this applicant are unfair, are not on a level playing field, and should be rejected. He asked whether the code limits the number of dispensaries, stating that if the Council approves this item, a third dispensary could move to Lake Havasu City, which for some non-profitable dispensaries, would be a better location than where they are now. Councilmember Dolan asked if there was a limit on the number of licenses, to which Ms. Garry said the number of licenses is limited by the language in the proposition; therefore, the City does not have any restrictions on the number of marijuana facilities established. She said the City has limited jurisdiction on marijuana establishments, which are strictly limited to zoning. Mr. Wisdom asked what the hours of operation would be and whether any traffic studies have been conducted on marijuana dispensaries. Mr. Gorden said the hours of operation have not been established as there is not an operator at this time, and addressed some of the comments from Mr. LaSota clarifying that the Hampton Inn liquor license is a public license and all areas with common or shared parking have the legal right to utilize the parking and circulation regardless of ownership. Mr. Morris reviewed the hours of operation for marijuana establishments as outlined in the City Code. Mr. James McGue, citizen, addressed the Council and said he was the opening manager of Farm Fresh in 2015. He said in January 2021, they received approval for recreational sales at their current location; however, they were unable to intensify or expand their business due to zoning restrictions. He said these businesses should be able to growth and expand but should not be near families and children and asked the Council to put the ownership on these profitable businesses who can find zoning in appropriate areas. Mr. Diaz said he has been involved with these decisions in the past and was concerned with the surrounding neighbors, traffic issues, and drive-thru challenges. Lake Havasu City Page 15 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Mr. Greg Logan, citizen, addressed the Council concerning the proposed location and traffic issues with the drive-thru. Mr. Morris reviewed the plans and explained how the drive-thru was determined. Mr. Morris reiterated that this is a conceptual plan that has not gone through design review or permitting. Public Works Director Greg Froslie added that the site plan was reviewed by staff and it was determined that with little traffic on Paseo Del Sol the entrance and exit for the drive-thru would be a good compromise. Mr. Knudson clarified that the drive-thru area discussed is on City right-of-way not City property. Dr. Jack Dunn, applicant and property owner, addressed the Council and said the site plan for the drive-thru is set for handicapped patients to limit face-to-face contact in the event of another pandemic, adding that they typically see 150 to 200 patients a day. Councilmember Campbell said she would like to see this item tabled to discuss the process, speak with constituents and businesses, and put a policy in place that makes sense and is less restrictive. Mayor Sheehy reviewed the separation requirements for marijuana establishments as outlined in the development standards. He said Mr. McGue mentioned that their business was denied; however, it did not come before the City Council in the form of a planned development or zoning. Councilmember Dolan said the Council established this process to allow for public comment and questioned if the separation requirements were waived for Farm Fresh, to which Mr. Morris explained that Farm Fresh was approved prior to the code changes for medical marijuana, which allowed Farm Fresh to be legal non-conforming and continue operating at their current location. He said any expansion of use over a certain percentage requires an applicant to meet the current standards. He said Farm Fresh was denied because they did not comply with current zoning regulations. The following public written comments were received and read into the record: • Mr. Jerome Ringhofer, citizen • Mr. Dallas Tripp, citizen • Mr. Louise Winkle, citizen There being no further comments, Mayor Sheehy closed the public hearing. Mayor Sheehy addressed the comment regarding the effect, if any, of future liquor licenses in the area if this is approved, to which Ms. Garry explained that separation requirements are specific to a marijuana facility and would not apply to another private Lake Havasu City Page 16 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 business wanting to operate. Councilmember Moses asked if the planned development could include restrictions on signage to limit certain phrases, pictures, or symbols. Ms. Garry stated that the Council would need to be specific on what they are limiting and staff would have to evaluate whether it is even possible to interpret and apply those restrictions. She said any signage restrictions would also need to be discussed with the property owners and representatives. Mr. JP Dunn, applicant, addressed the Council and said neither of the current licenses have marijuana leaves in their logo and their intention is to have one of the current licenses move into this location. Councilmember Campbell said other cities have created design review boards for their marijuana dispensaries to address things like signage. Mayor Sheehy asked if the City Council could review and address restrictions through the sign ordinance, to which Ms. Garry said she would not recommend addressing any restrictions through the City’s sign code. She said the City has a design review process but does not have anything in place that currently restricts the conditions the City Council is proposing. Mr. Gorden explained that ownership understands the City Council’s concern and would be open to a condition that any signage would have to go through design review. Ms. Garry said the City’s design review process includes signage but no conditions in the existing code that limit what the City Council is proposing. Councilmember Campbell suggested that the motion include an amendment that all marijuana retail dispensaries go through a planned design review board. Ms. Garry explained that there is a design review process; however, the existing sign code will be applied which does not contain any of the sign restrictions being proposed. Ms. Garry explained that it would be difficult to draft language for an amendment at this time, and questioned if there was a consensus from the Council regarding restricting signage. Dr. Dunn gave his word that the signage would not include marijuana and only contain the name of the business. Councilmember Dolan moved to adopt Ordinance No. 21-1257 for approval of a Planned Development Rezone of 200 London Bridge Road, Tract 2183, Block 6, Lot 1, from Limited Commercial District (C-1) to General Commercial/Planned Development District (C-2/PD), to allow exceptions from Section 14.03.03.C.17.b.ii.B 3 & 4 separation of 500 feet from a public park, playground, or recreational facility and an establishment having an Arizona spirituous liquor Lake Havasu City Page 17 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 license, for a proposed marijuana establishment, with the following condition: 1. The property shall substantially match the Development Plan provided with the request, seconded by Councilmember Lin, and carried by the following vote: Aye: 4 - Mayor Sheehy, Councilmember Dolan, Councilmember Lin and Councilmember Moses Nay: 3 - Vice Mayor Coke, Councilmember Campbell and Councilmember Lane 8.10 ID 21-2821 Approve Purchase of London Bridge Dynamic Lighting and Software from Independent Electric Supply Inc. (Ken Porosky) Transportation & Maintenance Superintendent Ken Porosky addressed the Council requesting approval of new lighting and software for the London Bridge. Mr. Porosky said staff has taken great care to preserve the original lighting as originally designed with a modern twist that allows the lighting be changed remotely through technology. Councilmember Campbell asked if the new lighting is more energy efficient, to which Mr. Porosky explained that the new lighting fixtures are commercial-grade and used on bridges and buildings around the world. Mr. Porosky added that 700 lighting fixtures would be replaced. 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 Lane moved to approve the purchase of the London Bridge Dynamic Lighting and Software in the amount of $281,048.11 from Independent Electric Supply Inc., seconded by Vice Mayor Coke, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.11 ID 21-2829 Award the Bid for Bulk Supply of Ferric Chloride for Drinking Water Treatment to California Water Technologies (Bill Gane) Water Superintendent Bill Gane said staff is seeking approval of a purchase order for bulk supply of Ferric Chloride used for drinking water treatment to the low bidder, California Water Technologies. 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 Campbell moved to award the bid for Bulk Supply of Ferric Lake Havasu City Page 18 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Chloride to California Water Technologies and issue a one-year purchase order requirements contract for an anticipated annual expenditure of $51,520 and authorize City staff to exercise the option to renew annually for a maximum of four additional twelve (12) month terms, seconded by Councilmember Lin, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.12 ID 21-2819 Approve Agreement for Professional Services (Construction Management) for the Havasupai Wash #3 Stabilization Improvements to Kimley-Horn & Associates, Inc. (Dan Sloan) Assistant City Engineer Dan Sloan said staff is requesting approval of a construction management contract with Kimley-Horn & Associates to provide professional services for the Havasupai Wash #3 construction project to provide site observation, verification of performance, and support changes during construction. Mr. Sloan added that staff negotiated a professional services fee of $86,600, which is included in the Fiscal Year 2021-22 Capital Improvement Plan (CIP) budget. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. Vice Mayor Coke moved to approve the Agreement for Professional Services for the Havasupai Wash #3 Stabilization Improvements to Kimley-Horn & Associates, Inc. in the amount of $86,600, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.13 ID 21-2822 Award Agreement for Professional Services (Design) for the Aquatic Center HVAC Project to Spectrum Engineers (Dan Sloan) Mr. Sloan advised that the Aquatic Center HVAC Project consists of adding air conditioning and dehumidification to the natatorium of the Aquatic Center, replacing the locker room air-handling units and associated duct work, new digital controls, and code compliance upgrades to the mechanical and chemical storage rooms, which were identified as high-priority items in a comprehensive building survey conducted by Henderson Engineers in 2018. He said funding for this project was added to the CIP FY 2020, with anticipated design and construction to be completed in FY 2022. Mr. Sloan said a formal Request for Qualifications (RFQ) process was conducted in March 2021 to select a consultant to perform the design, with Spectrum Engineers being the only respondent. He Lake Havasu City Page 19 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 said staff has negotiated a fee of $206,338, with Spectrum Engineers, Inc., with project completion in October 2021. Mr. Knudson added that $2.25 million has been identified in the CIP budget for design and construction of the Aquatic Center HVAC Project. 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 Campbell moved to award the Agreement for Professional Services for the Aquatic Center HVAC Project to Spectrum Engineers in the amount of $206,338, seconded by Councilmember Lane, and carried by the following vote: Aye: 7 - Mayor Sheehy, Vice Mayor Coke, Councilmember Campbell, Councilmember Dolan, Councilmember Lane, Councilmember Lin and Councilmember Moses 8.14 ID 21-2783 Award Agreement for Professional Services for the Design of the New Municipal Courthouse to DFDG Architecture (Dan Sloan) Mr. Sloan advised that this item is to award a professional services agreement for the design of the new municipal courthouse. The Municipal Court currently operates within the Mohave County Annex and shares space with Mohave County Courts under a lease agreement. The County and City previously deconsolidated and segregated their court systems, which resulted in the City looking to provide a new space for the Municipal Court. In 2020, the City purchased an existing building, 92 Acoma Boulevard, for a new municipal courthouse and City Council chambers. The 21,900 square foot building, previously utilized as a fitness center, was constructed in 2002 and will require a full Tenant Improvement (TI) project to accommodate the new uses. For the design of the new municipal courthouse, a formal solicitation (RFQ) was performed and the highest-ranking consultant, DFDG Architecture (DFDG), was selected. Staff has negotiated a fee of $509,527, with DFDG for professional services. Mr. Sloan reviewed the basic services as follows: Basic Services • Programming and Conceptual Design $10,000 • Schematic Design $69,475 • Design Development $101,300 • Construction Documents $133,830 • Bidding & Negotiations $3,660 Total: $318,625 Lake Havasu City Page 20 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 Mr. Sloan reviewed the itemized supplemental services as follows: Itemized Supplemental Services • Cost Estimating $39,842 • Optional Second Floor Shell $82,800 • Acoustic Design $13,750 • Court Technology Design $15,400 • Fire Protection Design $7,700 • Fire Alarm Design $1,650 • Traffic Analysis $5,720 • Topographic Survey $4,400 Total: $171,262 Mr. Sloan reviewed the total design services as follows: Total Design Services • Basic Services $318,265 • Itemized Supplemental Services $171,262 • Reimbursable Expenses $20,000 Total: $509,527 Mr. Sloan reviewed the estimated project schedule as follows: Estimated Schedule • Design Contract June 2021 • Design Complete December 2021 • Permitting January/February 2022 • Bidding February/March 2022 • Construction Contract Award April 2022 • Construction Complete April 2023 • Furniture, Fixtures & Equipment May/June 2023 IT/Court Move • Building Opening July 2023 Councilmember Dolan said he was in favor of the agreement and design but wanted to ensure that the consultant is aware of the Council’s expectations for this project. He said the City needs plans for a functional building and not all the extras (designs, views, and look). Mayor Sheehy agreed with Councilmember Dolan stating that the expectations as discussed during the City Council Planning Session was that the Council likes the current Lake Havasu City Page 21 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 architectural elements of the building and the City’s need is for the building to house the court functionally. Mayor Sheehy asked if the Council will receive updates or work sessions through the design process, to which Mr. Knudson said communications will be provided to Council through his office with an update to the City Council once the project reaches 60 percent design review. Mr. Rob Sampson, Selberg Associates, addressed the Council and said they are partnered with DFDG on this contract. He reviewed the cost-estimating component that will help meet the milestones and costs. He said they are cognizant of the City’s needs, know the challenges, and want to make this project successful for everyone. Mr. Knudson spoke on the total design costs, which include basic and supplemental services. He said approximately $90,000 of the design costs include looking at a shell of the second floor to maximize the space of the building to better plan for the future. Councilmember Campbell spoke concerning the cost for design and questioned the project’s total construction cost and total number of design hours. Mr. Sampson explained that they solicited contracts from engineers and said the ten percent fee is consistent throughout commercial construction design costs across municipalities in Arizona. He spoke on the total number of hours and said they estimate a total build out of around $5 to $7 million. Councilmember Campbell suggested that the Council postpone this item and resolicit for RFQ’s in three or four months to see whether supplies increase and material costs decrease. She was concerned with the rush to move this along and said the Council needs to determine whether they have the potential to spend another $7 million for a courthouse TI. Councilmember Dolan agreed with Councilmember Campbell. Mayor Sheehy said he does not believe it was the Council’s intention to spend $5 to $7 million; however, the City does need to start at some point on the design plans. Mayor Sheehy asked how the fees were determined, to which Mr. Sampson explained that the costs are based on estimated hours in each of the design phases and explained the specialty of designing a courthouse. Mayor Sheehy asked about the methodology behind the design fees. He said the City Council is not spending $5 million on a courthouse; however, there is a need to stay on Lake Havasu City Page 22 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 schedule and move forward in a way that meets the needs and is fiscally responsible. Mr. Sampson said he is not the controlling member of the architectural firm and does not have the ability to discuss the methodology; however, the numbers were negotiated with City staff and they will work through the design process to keep costs as minimal as possible. He said the basic services are to design the building and the supplemental services are optional. There was discussion regarding the topographic survey costs and optional second floor costs. Mr. Sampson explained that the design process will determine whether a second floor is needed. Mr. Knudson said the City Council has several options tonight. Council can direct staff to reissue the RFQ, approve the contract with changes, or table the item for staff to renegotiate the contract. Councilmember Dolan was concerned with the total costs, to which Mr. Sampson spoke on the specialized needs of designing a courthouse versus a residential house or another building. Mayor Sheehy said the bulk of the costs are the construction documents. He said the City has invested in a beautiful building and needs to economically design and construct the courthouse the right way. There was discussion on what the project would look like approving only the basic services and bidding the project with only schematic design. Mayor Sheehy suggested the Council proceed with the design contract with built-in benchmarks that will come back to Council to determine whether to move forward. There was discussion regarding the RFQ and selection process. Mr. Froslie interjected that this item is approval of a contract with DFDG, who is not in attendance, and he is not certain whether Selberg Associates is authorized to negotiate on their behalf. He said the Council can choose to table this and direct staff to come back with a smaller package with the same firm for the Council’s consideration. He said, out of the five proposals received, DFDG was the best and highest qualified for the project. City Magistrate Kalauli addressed the Council concerning the narrative and perception to the public. He said there are few buildings that are very important and form the basis of a municipality: City Hall, Police Department, Fire Department, and Courthouse. He said he would like to see the City build a courthouse that people can be proud of and matches Lake Havasu City Page 23 Printed on 6/11/2021 City Council Minutes - Final May 25, 2021 with the services they provide. Mayor Sheehy opened the public hearing. There being no comments, he closed the public hearing and added that no written public comments were received. There was discussion regarding the total square footage, number of floors needed, and options including utilizing existing City-owned property at City Hall. Councilmember Dolan moved to award the Agreement for Professional Services for the design of the new municipal courthouse to DFDG Architecture in the amount of $509,527, seconded by Councilmember Lane, and carried by the following vote: Aye: 5 - Mayor Sheehy, Vice Mayor Coke, Councilmember Dolan, Councilmember Lane and Councilmember Moses Nay: 2 - Councilmember Campbell and Councilmember Lin 9. CURRENT EVENTS There were no Council committee reports. 10. FUTURE MEETINGS Tuesday, June 8, 2021 @ 6:00 p.m. – Regular Meeting (Tentative Budget & CIP Adoption) Tuesday, June 22, 2021 @ 6:00 p.m. – Regular Meeting (Final Budget Adoption) Tuesday, July 13, 2021 @ 6:00 p.m. – Regular Meeting (Property Tax Levy Adoption) 11. FUTURE DISCUSSION ITEMS Councilmember Moses requested an item regarding signage, to which Ms. Garry suggested a meeting with Councilmember Moses to review and discuss signage and if it is still something that he would like to discuss with the Council, he could come back and request a future agenda item. 12. ADJOURN Upon motion by Councilmember Lane and seconded, the meeting adjourned at 10:06 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 May, 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 24 Printed on 6/11/2021